Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Amazon.com 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 demonstrated a consistent upward trend throughout the observed period. Beginning at US$46,327 million in 2021, it increased to US$139,514 million by 2025. This represents substantial growth in the company’s ability to generate cash from its core business operations.
- Free Cash Flow to Equity (FCFE)
- The Free Cash Flow to Equity exhibited significant volatility. In 2021, FCFE was negative, registering at -US$2,616 million. A substantial improvement occurred in 2022, with FCFE reaching US$4,397 million. This positive trend continued through 2023 and 2024, peaking at US$27,076 million in 2024. However, FCFE decreased in 2025 to US$21,183 million, although remaining positive.
- The initial negative FCFE in 2021 suggests the company may have been prioritizing investments or returning capital to shareholders exceeding its internally generated cash flow. The subsequent increases indicate improved cash generation relative to equity holders’ claims. The decline in 2025, despite continued growth in operating cash flow, warrants further investigation to determine the underlying causes, such as increased debt repayment, share repurchases, or significant capital expenditures not fully reflected in operating activities.
- The divergence between the consistently rising operating cash flow and the fluctuating FCFE suggests that factors beyond core operations significantly influence the cash available to equity holders. These factors could include changes in financing activities, such as debt levels and equity issuance/repurchase programs, or shifts in investment strategies.
Overall, the company demonstrates a strong and growing capacity to generate cash from operations. However, the distribution of that cash to equity holders is subject to considerable variation, indicating the influence of strategic financial decisions beyond core business performance.
Price to FCFE Ratio, Current
Amazon.com Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 10,734,920,870 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 21,183) |
| FCFE per share | 1.97 |
| Current share price (P) | 212.65 |
| Valuation Ratio | |
| P/FCFE | 107.76 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Home Depot Inc. | 13.91 |
| Lowe’s Cos. Inc. | 19.36 |
| TJX Cos. Inc. | 41.76 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 51.10 |
| P/FCFE, Industry | |
| Consumer Discretionary | 45.92 |
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
Amazon.com 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 | 10,734,920,870 | 10,597,729,352 | 10,387,381,291 | 10,247,259,757 | 10,176,888,200 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 21,183) | 27,076) | 21,205) | 4,397) | (2,616) | |
| FCFE per share3 | 1.97 | 2.55 | 2.04 | 0.43 | -0.26 | |
| Share price1, 4 | 210.32 | 229.15 | 171.81 | 103.39 | 157.64 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 106.58 | 89.69 | 84.16 | 240.95 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Home Depot Inc. | 13.90 | 20.12 | 19.60 | 19.87 | 15.41 | |
| Lowe’s Cos. Inc. | 18.22 | 18.03 | 7.08 | 13.55 | 12.28 | |
| TJX Cos. Inc. | 33.24 | 28.74 | 33.59 | — | 10.55 | |
| P/FCFE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 49.90 | 53.08 | 41.58 | 51.89 | 59.10 | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 106.35 | 39.73 | 30.88 | 36.44 | 83.50 | |
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
= 21,183,000,000 ÷ 10,734,920,870 = 1.97
4 Closing price as at the filing date of Amazon.com Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 210.32 ÷ 1.97 = 106.58
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits significant fluctuation over the observed period. Initially, the ratio is unavailable for 2021. However, a substantial value of 240.95 is recorded for 2022, followed by a marked decrease in subsequent years.
- P/FCFE Trend
- The P/FCFE ratio decreased considerably from 240.95 in 2022 to 84.16 in 2023. This decline suggests a potential undervaluation relative to the free cash flow available to equity holders, or a significant increase in investor confidence regarding future FCFE generation. A slight increase to 89.69 is observed in 2024, followed by a further increase to 106.58 in 2025, indicating a moderating trend in valuation relative to FCFE.
The Free Cash Flow to Equity per share demonstrates a transition from negative values to positive growth. A negative value of -0.26 is recorded in 2021, shifting to a positive 0.43 in 2022. This positive trend continues with 2.04 in 2023 and 2.55 in 2024, before decreasing slightly to 1.97 in 2025. This indicates improving cash generation available to equity holders over the period.
- Share Price Movement
- The share price experienced a decline from US$157.64 in 2021 to US$103.39 in 2022. A substantial recovery is then noted, with the price rising to US$171.81 in 2023 and further increasing to US$229.15 in 2024. A slight decrease to US$210.32 is observed in 2025. This suggests a period of market correction followed by renewed investor interest and subsequent stabilization.
The interplay between the share price and FCFE per share influences the P/FCFE ratio. The high ratio in 2022 is likely a result of the low share price combined with a relatively small positive FCFE per share. The subsequent decreases in the P/FCFE ratio are attributable to the increasing FCFE per share, while the fluctuations in 2024 and 2025 reflect the combined effect of share price and FCFE per share movements.