Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
AppLovin Corp., FCFE calculation
US$ in thousands
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).
The financial information reveals significant fluctuations in both net cash provided by operating activities and free cash flow to equity (FCFE) over the observed period. Net cash from operations demonstrates a consistent upward trajectory, while FCFE exhibits a more volatile pattern.
- Net Cash from Operating Activities
- Net cash provided by operating activities increased substantially throughout the period. Starting at US$361.851 million in 2021, it rose to US$412.773 million in 2022, then experienced a considerable jump to US$1.061.510 million in 2023. This growth continued, reaching US$2.099.011 million in 2024 and culminating in US$3.971.094 million in 2025. This indicates improving operational efficiency and cash generation capabilities.
- Free Cash Flow to Equity (FCFE)
- FCFE displayed a marked contrast in trend. In 2021, FCFE stood at US$743.890 million. However, a substantial decline occurred in 2022, resulting in a negative value of US$-983.558 million. A recovery was observed in 2023, with FCFE reaching US$865.827 million. Further growth followed in 2024 and 2025, with FCFE increasing to US$2.401.862 million and US$3.921.791 million respectively. The negative FCFE in 2022 suggests potential factors such as significant investments, debt repayments, or share repurchases exceeding cash flow from operations during that year.
The divergence between the consistently increasing operating cash flow and the fluctuating FCFE suggests that factors beyond core operations significantly influence the cash available to equity holders. The substantial recovery and subsequent growth in FCFE from 2023 onwards, coupled with the continued growth in operating cash flow, indicates a strengthening financial position.
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Price to FCFE Ratio, Current
AppLovin Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 337,278,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 3,921,791) |
| FCFE per share | 11.63 |
| Current share price (P) | 458.95 |
| Valuation Ratio | |
| P/FCFE | 39.47 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 8.19 |
| Adobe Inc. | 9.82 |
| Cadence Design Systems Inc. | 50.26 |
| CrowdStrike Holdings Inc. | 84.43 |
| Datadog Inc. | 163.32 |
| International Business Machines Corp. | 16.13 |
| Intuit Inc. | 21.02 |
| Microsoft Corp. | 45.40 |
| Oracle Corp. | 85.33 |
| Palantir Technologies Inc. | 183.13 |
| Palo Alto Networks Inc. | 53.46 |
| Salesforce Inc. | 9.09 |
| ServiceNow Inc. | 25.60 |
| Synopsys Inc. | 5.59 |
| Workday Inc. | 12.68 |
| P/FCFE, Sector | |
| Software & Services | 32.95 |
| P/FCFE, Industry | |
| Information Technology | 45.41 |
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
AppLovin Corp., 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 | 337,278,000 | 339,958,231 | 341,996,982 | 376,403,220 | 375,826,535 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 3,921,791) | 2,401,862) | 865,827) | (983,558) | 743,890) | |
| FCFE per share3 | 11.63 | 7.07 | 2.53 | -2.61 | 1.98 | |
| Share price1, 4 | 412.00 | 320.49 | 58.99 | 13.50 | 44.55 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 35.43 | 45.36 | 23.30 | — | 22.51 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Accenture PLC | 9.96 | 23.91 | 21.01 | 17.87 | 25.76 | |
| Adobe Inc. | 12.06 | 18.02 | 41.83 | 21.32 | 34.26 | |
| Cadence Design Systems Inc. | 50.96 | 24.08 | 71.40 | 33.41 | 36.31 | |
| CrowdStrike Holdings Inc. | 71.69 | 85.82 | 42.65 | 99.63 | 41.38 | |
| Datadog Inc. | 153.91 | 28.64 | 71.93 | 69.38 | 202.25 | |
| International Business Machines Corp. | 14.89 | 20.90 | 9.97 | 11.97 | 48.45 | |
| Intuit Inc. | 31.01 | 38.43 | 38.74 | 13.86 | 86.74 | |
| Microsoft Corp. | 60.89 | 42.11 | 43.32 | 36.73 | 42.54 | |
| Oracle Corp. | 113.86 | 48.38 | 15.47 | — | 8.36 | |
| Palantir Technologies Inc. | 151.45 | 256.11 | 74.28 | 96.89 | 198.12 | |
| Palo Alto Networks Inc. | 50.89 | 52.90 | 79.75 | 29.54 | 32.91 | |
| Salesforce Inc. | 25.91 | 38.33 | 31.06 | 16.56 | 49.52 | |
| ServiceNow Inc. | 26.94 | 61.82 | 58.19 | 44.44 | 64.54 | |
| Synopsys Inc. | 6.21 | 63.94 | 57.04 | 33.41 | 40.55 | |
| Workday Inc. | 29.52 | 36.59 | 19.79 | 49.17 | 40.57 | |
| P/FCFE, Sector | ||||||
| Software & Services | 40.81 | 39.85 | 32.92 | 31.52 | 34.18 | |
| P/FCFE, Industry | ||||||
| Information Technology | 45.27 | 36.64 | 33.18 | 27.06 | 27.42 | |
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
= 3,921,791,000 ÷ 337,278,000 = 11.63
4 Closing price as at the filing date of AppLovin Corp. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 412.00 ÷ 11.63 = 35.43
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initial values indicate a substantial decrease in the ratio followed by a period of increase and subsequent stabilization. A detailed examination of the components and the resulting ratio reveals key trends.
- Share Price
- The share price demonstrates significant volatility. It decreased substantially from 2021 to 2022, then increased markedly in 2023 and 2024, before a more moderate increase in 2025. This pattern directly influences the P/FCFE ratio.
- FCFE per Share
- Free Cash Flow to Equity per share experienced a negative value in 2022, indicating a cash outflow to equity holders. Subsequent years show a return to positive values, with a consistent upward trend from 2023 to 2025. This improvement in FCFE per share contributes to the observed changes in the P/FCFE ratio.
- P/FCFE Ratio
- The P/FCFE ratio began at 22.51 in 2021. A value for 2022 is absent, likely due to the negative FCFE per share. The ratio then rose to 23.30 in 2023, followed by a substantial increase to 45.36 in 2024. In 2025, the ratio decreased to 35.43. The increase in 2024 is likely driven by the combination of a significantly higher share price and a substantial increase in FCFE per share. The subsequent decrease in 2025 suggests a moderation in investor valuation despite continued growth in FCFE per share, potentially indicating a shift in market expectations or a reassessment of future growth prospects.
The interplay between share price and FCFE per share is critical in understanding the P/FCFE ratio’s movements. The negative FCFE in 2022 prevents a ratio calculation for that year. The substantial increase in the ratio in 2024 suggests a period of heightened investor optimism, while the decrease in 2025 indicates a potential recalibration of valuation.
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