Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
DoorDash, 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 exhibited a general upward trend over the observed period. Starting at $252 million in 2020, this figure increased substantially to $692 million in 2021. However, there was a notable decline in 2022 to $367 million, which was followed by a significant recovery and growth to $1,673 million in 2023 and further to $2,132 million in 2024. This pattern indicates improved operational efficiency and cash generation capacity, particularly in the latter two years.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity showed considerable volatility throughout the period. Beginning at $426 million in 2020, FCFE sharply declined to $122 million in 2021 and even further to a low of $21 million in 2022. This decline suggests increased investments or financial activities impacting cash available to equity holders. Subsequently, there was a marked recovery to $1,349 million in 2023, with continued growth to $1,802 million in 2024. This recovery aligns with the increase in operating cash flows, indicating a stronger ability to generate cash flow available to equity investors in recent years.
- Overall Analysis
- The data depicts a company with fluctuating cash flow performance in the early years, experiencing significant operational cash flow challenges in 2022. However, the subsequent sharp improvements in both net cash from operations and FCFE in the last two years under review suggest enhanced operational performance and financial health. The alignment of rising operating cash flow with increasing free cash flow to equity points to effective capital management and potential improvements in profitability or working capital dynamics.
Price to FCFE Ratio, Current
DoorDash, Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 423,744,125 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 1,802) |
| FCFE per share | 4.25 |
| Current share price (P) | 249.92 |
| Valuation Ratio | |
| P/FCFE | 58.77 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Airbnb Inc. | 19.74 |
| Booking Holdings Inc. | 16.05 |
| Chipotle Mexican Grill Inc. | 40.94 |
| McDonald’s Corp. | 32.33 |
| Starbucks Corp. | 31.06 |
| P/FCFE, Sector | |
| Consumer Services | 25.98 |
| P/FCFE, Industry | |
| Consumer Discretionary | 92.70 |
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
DoorDash, 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 | 420,096,084 | 404,004,211 | 392,075,689 | 348,411,427 | 321,463,740 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 1,802) | 1,349) | 21) | 122) | 426) | |
| FCFE per share3 | 4.29 | 3.34 | 0.05 | 0.35 | 1.33 | |
| Share price1, 4 | 213.38 | 115.48 | 54.19 | 102.43 | 151.48 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 49.74 | 34.58 | 1,011.74 | 292.52 | 114.31 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Airbnb Inc. | 19.83 | 25.72 | 24.76 | 54.32 | 99.90 | |
| Booking Holdings Inc. | 14.42 | 15.89 | 11.52 | 69.03 | 37.59 | |
| Chipotle Mexican Grill Inc. | 50.89 | 58.77 | 52.59 | 51.88 | 149.64 | |
| McDonald’s Corp. | 33.63 | 20.85 | 28.85 | 30.21 | 22.96 | |
| Starbucks Corp. | 32.25 | 29.75 | 34.82 | 45.80 | 20.79 | |
| P/FCFE, Sector | ||||||
| Consumer Services | 25.76 | 23.53 | 24.72 | 45.10 | 34.87 | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 39.73 | 30.88 | 36.44 | 83.44 | 32.34 | |
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
= 1,802,000,000 ÷ 420,096,084 = 4.29
4 Closing price as at the filing date of DoorDash, Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 213.38 ÷ 4.29 = 49.74
6 Click competitor name to see calculations.
The share price exhibited significant fluctuations over the five-year period. Starting at $151.48 in 2020, it declined sharply to $54.19 by the end of 2022, before rebounding strongly to reach $213.38 in 2024. This pattern indicates a period of decreased market valuation, followed by renewed investor confidence or improved company performance in subsequent years.
Free Cash Flow to Equity (FCFE) per share showed a contrasting trend compared to the share price initially. Beginning at $1.33 in 2020, FCFE per share decreased substantially to a low of $0.05 in 2022, reflecting a potential dip in available cash flow for shareholders. However, the figure then increased markedly to $4.29 by 2024, suggesting an improved cash generation capacity and possibly better financial health or operational efficiency.
The Price to FCFE (P/FCFE) ratio conveyed notable volatility. Initially, the ratio was high at 114.31 in 2020, indicating a relatively expensive share price compared to FCFE. This ratio spiked dramatically to over 1000 in 2022, signaling a potential overvaluation or extremely low FCFE at that time. Subsequently, it dropped to a much lower range around 35 to 50 in 2023 and 2024, reflecting a recalibration in the market valuation relative to the FCFE improvement.
Overall, the data suggests a phase of financial stress or operational challenges impacting cash flow up to 2022, followed by a recovery period. The substantial increase in both share price and FCFE per share in the last two years points to strengthened financial fundamentals. The stabilization of the P/FCFE ratio at more moderate levels in recent years indicates a move towards more reasonable market valuation based on cash flow metrics.