Free Cash Flow to Equity (FCFE)
Based on: 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), 10-K (reporting date: 2019-12-28).
Item | Description | The company |
---|---|---|
FCFE | Free cash flow to equity is the cash flow available to Cadence Design Systems Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. | Cadence Design Systems Inc. FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Price to FCFE Ratio, Current
No. shares of common stock outstanding | 273,820,000 |
Selected Financial Data (US$) | |
Free cash flow to equity (FCFE) (in thousands) | 1,146,673) |
FCFE per share | 4.19 |
Current share price (P) | 279.56 |
Valuation Ratio | |
P/FCFE | 66.76 |
Benchmarks | |
P/FCFE, Competitors1 | |
Accenture PLC | 25.17 |
Adobe Inc. | 33.76 |
Autodesk Inc. | 47.55 |
CrowdStrike Holdings Inc. | 78.71 |
International Business Machines Corp. | 12.74 |
Intuit Inc. | 38.33 |
Microsoft Corp. | 41.57 |
Oracle Corp. | 60.69 |
Palo Alto Networks Inc. | 57.16 |
Salesforce Inc. | 35.81 |
ServiceNow Inc. | 71.51 |
Synopsys Inc. | 53.78 |
P/FCFE, Sector | |
Software & Services | 41.13 |
P/FCFE, Industry | |
Information Technology | 51.72 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 272,239,000 | 272,940,000 | 277,336,000 | 278,974,000 | 280,168,000 | |
Selected Financial Data (US$) | ||||||
Free cash flow to equity (FCFE) (in thousands)2 | 1,146,673) | 1,517,254) | 1,032,792) | 810,109) | 554,995) | |
FCFE per share3 | 4.21 | 5.56 | 3.72 | 2.90 | 1.98 | |
Share price1, 4 | 300.74 | 185.70 | 135.21 | 133.16 | 71.39 | |
Valuation Ratio | ||||||
P/FCFE5 | 71.40 | 33.41 | 36.31 | 45.86 | 36.04 | |
Benchmarks | ||||||
P/FCFE, Competitors6 | ||||||
Accenture PLC | 21.03 | 17.91 | 25.76 | 19.01 | 19.50 | |
Adobe Inc. | 41.83 | 21.32 | 34.26 | 41.36 | 41.90 | |
Autodesk Inc. | 25.55 | 16.66 | 64.43 | 24.07 | 41.92 | |
CrowdStrike Holdings Inc. | 42.65 | 99.63 | 41.38 | 880.68 | — | |
International Business Machines Corp. | 9.97 | 11.97 | 48.45 | 9.43 | 4.39 | |
Intuit Inc. | 38.74 | 13.86 | 86.74 | 17.36 | 34.61 | |
Microsoft Corp. | 43.32 | 36.73 | 42.54 | 42.74 | 30.77 | |
Oracle Corp. | 15.47 | — | 8.36 | 6.27 | 22.31 | |
Palo Alto Networks Inc. | 79.75 | 29.54 | 32.91 | 8.11 | 46.20 | |
Salesforce Inc. | 31.06 | 16.56 | 49.52 | 50.40 | 29.09 | |
ServiceNow Inc. | 58.13 | 44.44 | 64.54 | 49.83 | 68.98 | |
Synopsys Inc. | 57.04 | 33.41 | 40.55 | 45.07 | 77.64 | |
P/FCFE, Sector | ||||||
Software & Services | 32.73 | 30.44 | 33.85 | 25.89 | 22.16 | |
P/FCFE, Industry | ||||||
Information Technology | 33.72 | 26.70 | 27.46 | 23.54 | 19.43 |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,146,673,000 ÷ 272,239,000 = 4.21
4 Closing price as at the filing date of Cadence Design Systems Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 300.74 ÷ 4.21 = 71.40
6 Click competitor name to see calculations.
Valuation ratio | Description | The company |
---|---|---|
P/FCFE | Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. | Cadence Design Systems Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |