Price to FCFE (P/FCFE)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
Alphabet Inc., FCFE calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
- Net cash provided by operating activities
- The net cash provided by operating activities demonstrates a consistent upward trend throughout the analyzed period. Starting from $65,124 million in 2020, the figure rose significantly to $91,652 million in 2021. It remained relatively stable in 2022 at approximately $91,495 million, before increasing again in 2023 to $101,746 million. The highest value is observed in 2024, reaching $125,299 million. This progression indicates an overall improvement in the company’s ability to generate cash from its core operations over the five-year span.
- Free cash flow to equity (FCFE)
- The Free Cash Flow to Equity shows a fluctuating but generally upward pattern over the corresponding years. Starting at $52,504 million in 2020, FCFE increased to $65,776 million in 2021, reflecting a strong growth in cash flow available to shareholders. However, there was a decline in 2022, with FCFE falling to $58,814 million. This was followed by a recovery in the subsequent years, increasing to $68,735 million in 2023 and then to $73,652 million in 2024. Despite the dip in 2022, the data indicate an overall positive trend in the cash flow available for equity holders.
- General observations
- The company exhibits strong cash-generating capabilities from its operations, as the net cash from operating activities shows a steady increase with a slight plateau in 2022. The FCFE’s temporary decline in 2022, contrasted against the stable operating cash flow in the same year, suggests that factors affecting FCFE, such as capital expenditures or financing outflows, might have impacted that year's free cash flow. Nonetheless, the recovery and continued growth in FCFE in 2023 and 2024 reinforce the company’s sound financial health and capacity to return value to equity shareholders.
Price to FCFE Ratio, Current
Alphabet Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| 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. | |
| Take-Two Interactive Software Inc. | |
| Walt Disney Co. | |
| P/FCFE, Sector | |
| Media & Entertainment | |
| P/FCFE, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/FCFE, Sector | ||||||
| Media & Entertainment | ||||||
| P/FCFE, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Alphabet Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Analysis
- The share price demonstrated notable volatility over the observed periods. It increased markedly from 103.5 US$ at the end of 2020 to 148.04 US$ by the end of 2021, representing a significant appreciation. This was followed by a decline to 105.22 US$ in 2022. Subsequently, the share price recovered strongly, rising to 141.8 US$ by the end of 2023 and reaching its highest point of 193.3 US$ at the end of 2024.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share exhibited an overall upward trend. Starting at 3.89 US$ in 2020, it rose steadily to 4.98 US$ in 2021. Although there was a slight decrease to 4.59 US$ in 2022, FCFE per share improved again in subsequent years, climbing to 5.53 US$ in 2023 and reaching 6.04 US$ by 2024. This suggests strengthening cash generation capacity available to equity holders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio fluctuated alongside share price movements but did not consistently move in tandem with FCFE per share. The ratio increased from 26.58 in 2020 to a peak of 29.75 in 2021, then declined sharply to 22.91 in 2022, reflecting the drop in share price coupled with a slight decrease in FCFE per share. Subsequently, the ratio rose again to 25.65 in 2023 and further to 31.99 in 2024, indicating that the market valuation relative to free cash flow per share expanded, especially in the last year. This implies growing investor confidence or increased market optimism about future cash flows beyond the actual cash flows generated.
- Overall Insights
- The data reflects a company experiencing fluctuations in market valuation with overall positive growth in free cash flow per share. The divergence between FCFE per share and the P/FCFE ratio in the latter years signifies that market valuation may be increasingly driven by expectations rather than current cash flow alone. The rising share price combined with increasing FCFE per share by 2024 suggests strengthening financial performance and investor confidence.