Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Expedia Group Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The cash flow profile exhibits significant volatility over the five-year period, characterized by steady growth through 2019, a severe contraction in 2020, and a robust recovery in 2021. While operating cash flows generally trended upward in the initial years, the sudden shift to a negative position in 2020 indicates a period of acute financial stress before returning to peak levels in 2021.
- Operating Cash Flow Trends
- Net cash provided by operating activities grew consistently from 1,799 million USD in 2017 to 2,767 million USD in 2019. This trajectory was interrupted in 2020 by a deficit of 3,834 million USD, marking the only negative year in the analyzed period. By 2021, operating cash flow rebounded to its highest recorded level of 3,748 million USD.
- Free Cash Flow to Equity (FCFE) Performance
- FCFE demonstrated higher volatility than operating cash flows. After starting at 2,078 million USD in 2017, it declined sharply to 597 million USD in 2018 despite an increase in operating cash, suggesting an uptick in capital expenditures or debt repayments. FCFE recovered to 2,838 million USD in 2019 before dropping to -1,436 million USD in 2020 and rebounding strongly to 3,075 million USD in 2021.
- Analysis of Cash Flow Divergence
- A notable divergence occurred in 2020, where FCFE (-1,436 million USD) was less negative than the operating cash flow (-3,834 million USD). This suggests that the company likely utilized external financing or significantly reduced capital expenditures to mitigate the operating deficit. In contrast, the 2018 period showed FCFE significantly trailing operating cash flow, pointing toward substantial cash outflows for non-operating investments or liability reductions during that fiscal year.
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Price to FCFE Ratio, Current
Expedia Group Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 157,097,831 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,075) |
| FCFE per share | 19.57 |
| Current share price (P) | 150.31 |
| Valuation Ratio | |
| P/FCFE | 7.68 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amazon.com Inc. | 132.83 |
| Home Depot Inc. | 25.09 |
| Lowe’s Cos. Inc. | 10.59 |
| TJX Cos. Inc. | 31.00 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 95.53 |
| P/FCFE, Industry | |
| Consumer Discretionary | 115.17 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Expedia Group Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 155,754,357 | 143,864,551 | 139,989,125 | 147,190,304 | 151,833,402 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,075) | (1,436) | 2,838) | 597) | 2,078) | |
| FCFE per share3 | 19.74 | -9.98 | 20.27 | 4.06 | 13.69 | |
| Share price1, 4 | 192.12 | 146.51 | 122.80 | 130.80 | 104.00 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 9.73 | — | 6.06 | 32.25 | 7.60 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | 15.41 | — | — | — | — | |
| Lowe’s Cos. Inc. | 12.28 | — | — | — | — | |
| TJX Cos. Inc. | 10.55 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 59.10 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 83.41 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,075,000,000 ÷ 155,754,357 = 19.74
4 Closing price as at the filing date of Expedia Group Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 192.12 ÷ 19.74 = 9.73
6 Click competitor name to see calculations.
The valuation metrics between 2017 and 2021 exhibit significant volatility, primarily driven by fluctuations in Free Cash Flow to Equity (FCFE) rather than consistent movements in the share price. While the market price of the shares maintained a general upward trajectory, the P/FCFE ratio shifted dramatically in response to the company's inconsistent cash flow generation.
- Share Price Trend
- A general appreciation in share price is observed, rising from 104.00 US$ in 2017 to 192.12 US$ in 2021. Despite a slight contraction in 2019, the long-term trend indicates sustained investor confidence or market growth over the five-year period.
- FCFE per Share Volatility
- Free Cash Flow to Equity per share demonstrated extreme variance. A sharp decline was recorded in 2018 at 4.06 US$, followed by a strong recovery to 20.27 US$ in 2019. A critical downturn occurred in 2020, with FCFE falling to -9.98 US$, before rebounding to 19.74 US$ in 2021.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio fluctuated in inverse correlation with the stability of cash flows. The ratio spiked to 32.25 in 2018, reflecting a disconnect between the share price and the diminished cash flow available to equity holders. By 2019, the ratio contracted to 6.06 as FCFE improved. The ratio was undefined in 2020 due to negative FCFE, and subsequently normalized to 9.73 in 2021, indicating a return to a valuation range consistent with previous years of positive cash flow.
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