Price to FCFE (P/FCFE)
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- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Free Cash Flow to Equity (FCFE)
Alphabet Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Net cash provided by operating activities and free cash flow to equity (FCFE) both demonstrate positive trends over the observed period. While FCFE experienced a decline between 2021 and 2022, it subsequently exhibited growth through 2025. Operating cash flow consistently increased throughout the period, suggesting improving core business performance.
- Net Cash from Operations
- Net cash provided by operating activities remained consistently strong, fluctuating between US$91.495 billion and US$164.713 billion. A clear upward trend is evident, with a substantial increase from US$91,652 million in 2021 to US$164,713 million in 2025. This indicates a strengthening ability to generate cash from core business operations.
- Free Cash Flow to Equity (FCFE)
- FCFE initially decreased from US$65,776 million in 2021 to US$58,814 million in 2022, representing a decline of approximately 10.3%. However, from 2022 onwards, FCFE showed consistent growth, reaching US$105,403 million in 2025. This recovery and subsequent growth suggest improved capital allocation efficiency and/or reduced capital expenditure requirements relative to operating cash flow. The growth rate accelerated between 2023 and 2025.
The divergence between the operating cash flow and FCFE trends suggests that changes in non-operating cash flows, such as financing activities or investments, significantly impacted the amount of cash available to equity holders. The increasing FCFE from 2022 onwards, coupled with rising operating cash flow, points to a positive development in the company’s ability to return value to shareholders or reinvest in growth opportunities.
Price to FCFE Ratio, Current
Alphabet Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Netflix Inc. | |
| Trade Desk Inc. | |
| Walt Disney Co. | |
| P/FCFE, Sector | |
| Media & Entertainment | |
| P/FCFE, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Alphabet Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| P/FCFE, Sector | ||||||
| Media & Entertainment | ||||||
| P/FCFE, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Alphabet Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits a fluctuating pattern over the observed five-year period. Initial observations reveal a decrease followed by an increasing trend. Share price and FCFE per share both demonstrate growth, contributing to the observed P/FCFE movements.
- Share Price
- The share price experienced a significant decline between 2021 and 2022, falling from US$148.04 to US$105.22. A recovery commenced in 2023, reaching US$141.80, and continued through 2025, culminating in a substantial increase to US$331.33. This indicates increasing investor confidence or market valuation over the latter part of the period.
- FCFE per Share
- FCFE per share showed a slight decrease from US$4.98 in 2021 to US$4.59 in 2022. Subsequent years witnessed consistent growth, reaching US$5.53 in 2023, US$6.04 in 2024, and US$8.71 in 2025. This suggests improving cash flow generation available to equity holders.
- P/FCFE Ratio
- The P/FCFE ratio decreased from 29.75 in 2021 to 22.91 in 2022, coinciding with the share price decline and a slight decrease in FCFE per share. The ratio then increased to 25.65 in 2023, further to 31.99 in 2024, and reached 38.03 in 2025. This upward trend suggests that the market is willing to pay a higher premium for each dollar of FCFE, potentially reflecting increased growth expectations or reduced risk perception. The increasing ratio, coupled with rising share price and FCFE per share, indicates a positive correlation between valuation and underlying cash flow generation.
In summary, the period began with a contraction in both share price and FCFE per share, resulting in a lower P/FCFE ratio. However, subsequent years demonstrate a recovery and expansion in both metrics, leading to a consistently increasing P/FCFE ratio. This suggests a strengthening financial position and increasing market valuation.