Stock Analysis on Net

Facebook Inc. (NASDAQ:FB)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Facebook Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 29,146  18,485  22,112  15,934  10,217 
Net noncash charges 12,324  10,579  8,689  6,395  5,133 
Changes in assets and liabilities (2,723) 7,250  (1,527) 1,887  758 
Net cash provided by operating activities 38,747  36,314  29,274  24,216  16,108 
Purchases of property and equipment (15,115) (15,102) (13,915) (6,733) (4,491)
Principal payments on finance leases (604) (552) —  —  (312)
Free cash flow to equity (FCFE) 23,028  20,660  15,359  17,483  11,305 

Based on: 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), 10-K (reporting date: 2016-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Facebook 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. Facebook Inc. FCFE increased from 2018 to 2019 and from 2019 to 2020.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 2,781,759,516
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 23,028 
FCFE per share 8.28
Current share price (P) 303.17
Valuation Ratio
P/FCFE 36.62
Benchmarks
P/FCFE, Competitors1
Alphabet Inc. 32.89
Charter Communications Inc. 10.00
Comcast Corp. 20.63
Netflix Inc. 60.07
Walt Disney Co.
P/FCFE, Sector
Media & Entertainment 29.04
P/FCFE, Industry
Communication Services 21.71

Based on: 10-K (reporting date: 2020-12-31).

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

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 2,847,669,951 2,850,450,659 2,853,989,800 2,905,000,758 2,889,981,334
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 23,028  20,660  15,359  17,483  11,305 
FCFE per share3 8.09 7.25 5.38 6.02 3.91
Share price1, 4 265.00 209.53 166.69 193.09 130.98
Valuation Ratio
P/FCFE5 32.77 28.91 30.97 32.08 33.48
Benchmarks
P/FCFE, Competitors6
Alphabet Inc. 26.58 32.39 34.99 31.54 22.63
Charter Communications Inc. 11.52 10.04 13.17 7.75 20.50
Comcast Corp. 21.40 100.99 3.41 14.93 10.93
Netflix Inc. 81.38 116.48 134.01 120.00
Walt Disney Co. 18.20 55.35 23.22 12.49 13.74
P/FCFE, Sector
Media & Entertainment 26.30 32.98 18.13 23.53 21.08
P/FCFE, Industry
Communication Services 20.22 31.34 19.16 16.60 22.51

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 23,028,000,000 ÷ 2,847,669,951 = 8.09

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

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 265.00 ÷ 8.09 = 32.77

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. P/FCFE ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.