Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Facebook Inc. (NASDAQ:FB)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Facebook Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 18,485  22,112  15,934  10,217  3,688 
Net noncash charges 10,579  8,689  6,395  5,133  4,127 
Changes in assets and liabilities 7,250  (1,527) 1,887  758  784 
Net cash provided by operating activities 36,314  29,274  24,216  16,108  8,599 
Purchases of property and equipment, net (15,102) (13,915) (6,733) (4,491) (2,523)
Principal payments on finance leases (552) —  —  (312) (119)
Free cash flow to equity (FCFE) 20,660  15,359  17,483  11,305  5,957 

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Facebook Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Facebook Inc.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to FCFE Ratio, Current

Facebook Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 2,848,292,671
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 20,660 
FCFE per share 7.25
Current share price (P) 275.59
Valuation Ratio
P/FCFE 37.99
Benchmarks
P/FCFE, Competitors1
Adobe Inc. 55.99
Alphabet Inc. 39.03
Autodesk Inc. 43.71
International Business Machines Corp. 3.86
Intuit Inc. 17.67
Microsoft Corp. 44.55
Oracle Corp. 6.40
salesforce.com inc. 74.57
ServiceNow Inc. 112.76
P/FCFE, Sector
Software & Computer Services 34.05
P/FCFE, Industry
Technology 30.21

Based on: 10-K (filing date: 2020-01-30).

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

Facebook Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 2,850,450,659 2,853,989,800 2,905,000,758 2,889,981,334 2,846,280,476
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 20,660  15,359  17,483  11,305  5,957 
FCFE per share3 7.25 5.38 6.02 3.91 2.09
Share price1, 4 209.53 166.69 193.09 130.98 109.11
Valuation Ratio
P/FCFE5 28.91 30.97 32.08 33.48 52.13
Benchmarks
P/FCFE, Competitors6
Adobe Inc. 41.90 19.87 35.56 27.41 19.13
Alphabet Inc. 32.39 34.99 31.54 22.63 29.29
Autodesk Inc. 41.92 609.14 197.14 11.80 22.14
International Business Machines Corp. 4.39 11.07 8.55 10.60 9.60
Intuit Inc. 34.61 29.29 42.22 21.01 18.76
Microsoft Corp. 30.77 37.57 8.86 10.12 10.15
Oracle Corp. 22.31 10.78 8.16 11.68 5.69
salesforce.com inc. 29.09 52.51 25.44 50.00 164.03
ServiceNow Inc. 74.57 327.16 22.36 410.08 38.70
P/FCFE, Sector
Software & Computer Services 25.41 28.10 15.99 16.26 14.74
P/FCFE, Industry
Technology 21.30 23.80 13.64 12.91 10.32

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 20,660,000,000 ÷ 2,850,450,659 = 7.25

4 Closing price as at the filing date of Facebook Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 209.53 ÷ 7.25 = 28.91

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. Facebook Inc.’s P/FCFE ratio decreased from 2017 to 2018 and from 2018 to 2019.