Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Paramount Global, FCFE calculation
US$ in millions
Based on: 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: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net cash flow provided by (used for) operating activities
- The net cash flow from operating activities exhibited a fluctuating trend over the five-year period. It initially decreased from 1,425 million USD in 2018 to 1,230 million USD in 2019, followed by a significant increase to 2,215 million USD in 2020. However, in the subsequent years, it declined sharply to 835 million USD in 2021 and turned negative in 2022, reaching -142 million USD. This trend suggests increasing operational challenges or changes in working capital requirements impacting cash generation from core activities towards the end of the period.
- Free cash flow to equity (FCFE)
- Free cash flow to equity presented a volatile and increasingly negative trajectory. Starting at 1,255 million USD in 2018, FCFE dramatically dropped to 484 million USD in 2019. It then surged sharply to 2,659 million USD in 2020, indicating a strong influx of cash available to equity holders. Subsequently, a marked deterioration occurred with FCFE turning negative in 2021 at -1,691 million USD and further declining to -2,502 million USD in 2022. This downward movement in FCFE, especially in the latter years, reflects growing outflows related to investments, financing activities, or operational inefficiencies affecting cash availability to equity shareholders.
Price to FCFE Ratio, Current
Paramount Global, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 651,557,231 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | (2,502) |
| FCFE per share | -3.84 |
| Current share price (P) | 16.40 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | 31.19 |
| Comcast Corp. | 7.88 |
| Meta Platforms Inc. | 30.13 |
| Netflix Inc. | 59.20 |
| Walt Disney Co. | 29.28 |
| P/FCFE, Sector | |
| Media & Entertainment | 50.60 |
| P/FCFE, Industry | |
| Communication Services | 63.62 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Paramount Global, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 650,516,853 | 648,584,674 | 619,606,133 | 613,739,990 | 372,969,983 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | (2,502) | (1,691) | 2,659) | 484) | 1,255) | |
| FCFE per share3 | -3.85 | -2.61 | 4.29 | 0.79 | 3.36 | |
| Share price1, 4 | 23.50 | 35.99 | 65.60 | 29.29 | 50.64 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | — | 15.29 | 37.14 | 15.05 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | 22.91 | 29.75 | 26.58 | — | — | |
| Comcast Corp. | 12.26 | 27.57 | 18.17 | — | — | |
| Meta Platforms Inc. | 17.26 | 16.84 | 32.77 | — | — | |
| Netflix Inc. | 176.91 | — | 81.38 | — | — | |
| Walt Disney Co. | — | — | 18.20 | 55.35 | — | |
| P/FCFE, Sector | ||||||
| Media & Entertainment | 23.67 | 29.77 | 27.24 | — | — | |
| P/FCFE, Industry | ||||||
| Communication Services | 31.82 | 26.52 | 20.51 | — | — | |
Based on: 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: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -2,502,000,000 ÷ 650,516,853 = -3.85
4 Closing price as at the filing date of Paramount Global Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 23.50 ÷ -3.85 = —
6 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced significant volatility over the observed period. It began at $50.64 at the end of 2018, followed by a sharp decline to $29.29 in 2019. In 2020, the share price rose substantially to $65.60, marking the highest point in the dataset. However, in the subsequent years, there was a steady decline to $35.99 in 2021 and further down to $23.50 by the end of 2022.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed considerable fluctuations throughout the period. Starting at $3.36 in 2018, it dropped significantly to $0.79 in 2019. The year 2020 witnessed a recovery with FCFE increasing to $4.29, the highest value recorded. However, the trend reversed sharply in 2021 and 2022, with negative FCFE values of -$2.61 and -$3.85, respectively, indicating a reduction in available cash flows attributable to equity holders during these years.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio was 15.05 at the end of 2018 and increased markedly to 37.14 in 2019, reflecting a higher price relative to cash flow per share. It then decreased to 15.29 in 2020, aligning with the recovery in FCFE per share. No values are available for 2021 and 2022, likely due to negative FCFE figures that render this ratio inapplicable or undefined.
- Overall Financial Observations
- The financial data reveal periods of volatility in both market valuation and cash flow generation. The share price and FCFE per share moved closely in some years, notably with synchronized increases in 2020 and declines afterward. The negative FCFE in the last two years suggests challenges in generating sufficient cash flow for equity holders, which is likely reflected in the declining share price during the same period. The absence of P/FCFE ratios in 2021 and 2022 aligns with the negative FCFE, indicating potential valuation concerns or temporarily impaired financial performance.