Price to FCFE (P/FCFE)
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2015
- Return on Equity (ROE) since 2015
- Price to Sales (P/S) since 2015
- Analysis of Debt
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Free Cash Flow to Equity (FCFE)
PayPal Holdings Inc., 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 Provided by Operating Activities
- The net cash provided by operating activities exhibited fluctuations over the five-year period. It started at 5,483 million USD at the end of 2018, then declined to 4,561 million USD in 2019. This was followed by a recovery to 5,854 million USD in 2020, further increasing to a peak of 6,340 million USD in 2021. However, in 2022, there was a decrease to 5,813 million USD. Overall, the data shows a pattern of initial decline, subsequent growth, and a slight downturn at the end of the period.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity demonstrated a generally upward trend with some variability. Beginning at 5,623 million USD in 2018, the figure rose significantly to 6,829 million USD in 2019, and surged further to 9,074 million USD in 2020. However, 2021 saw a substantial drop to 5,348 million USD, followed by a rebound to 6,901 million USD in 2022. This trend indicates strong growth over the early years, a sharp decline in 2021, and partial recovery in the subsequent year.
- Comparative Insights
- Comparing both cash flow measures reveals that free cash flow to equity generally remained higher than the net cash provided by operating activities during this period, except for the year 2021 where FCFE fell below operating cash flow. Both metrics show a dip in 2021, suggesting possible operational or investing activities impacting liquidity or equity returns during that year. The recovery in 2022 for both indicators points to improved cash generation and financial positioning.
Price to FCFE Ratio, Current
PayPal Holdings Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| P/FCFE, Sector | |
| Software & Services | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
PayPal Holdings Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| P/FCFE, Sector | ||||||
| Software & Services | ||||||
| P/FCFE, Industry | ||||||
| Information Technology | ||||||
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
= ÷ =
4 Closing price as at the filing date of PayPal Holdings Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant volatility over the analyzed period. It increased sharply from $90.85 at the end of 2018 to a peak of $269.44 in 2020, more than tripling in value during this interval. However, following this peak, the price fell considerably to $124.30 by the end of 2021 and declined further to $80.80 by the end of 2022, representing a substantial decrease from the peak and the lowest value in the five-year span.
- FCFE per Share
- The free cash flow to equity (FCFE) per share showed steady growth from 2018 to 2020, rising from $4.79 to $7.75. This upward trend suggests improving cash generation capacity allocated to shareholders during these years. In 2021, there was a notable decline to $4.59, indicating a temporary setback in cash flow generation. However, by the end of 2022, FCFE per share recovered somewhat to $6.10, although it did not return to the 2020 peak level.
- P/FCFE Ratio
- The price-to-free-cash-flow-to-equity ratio followed a fluctuating pattern consistent with changes in share price and FCFE per share. It rose from 18.96 in 2018 to 34.78 in 2020, reflecting a rapidly increasing market valuation relative to cash flow. The ratio then decreased to 27.08 in 2021, followed by a further decline to 13.25 in 2022. The lowered ratio in the most recent year indicates that the share price declined more substantially than FCFE per share, potentially pointing to a reduction in market expectations or repricing risk towards the equity.