Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Shockwave Medical Inc., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 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).
The financial profile between 2019 and 2023 demonstrates a significant transition from a cash-consuming phase to a period of substantial liquidity generation. Both net operating cash flow and free cash flow to equity (FCFE) exhibited a recovery pivot in 2021, followed by an accelerating upward trajectory through 2023.
- Net Operating Cash Flow Performance
- Operational cash flows were negative during 2019 and 2020, with the deficit deepening to -71.18 million USD in 2020. A fundamental shift occurred in 2021, as net cash provided by operating activities turned positive at 15.04 million USD. This growth intensified in 2022 and 2023, reaching 117.73 million USD and 196.05 million USD, respectively, indicating a strong improvement in core operational efficiency and cash conversion.
- Free Cash Flow to Equity (FCFE) Evolution
- FCFE mirrored the operating trend during the initial recovery period, moving from a low of -80.55 million USD in 2020 to a modest positive balance of 2.60 million USD in 2021. The figure expanded to 98.58 million USD in 2022 before experiencing an exponential surge to 774.54 million USD in 2023.
- Analysis of Cash Flow Divergence
- A significant divergence is observed between operating cash flow and FCFE in the final year of the analysis. While operating cash flow grew by approximately 66% between 2022 and 2023, FCFE grew by approximately 685%. This disproportionate increase suggests that the 2023 FCFE surge was not driven solely by operational performance, but was heavily influenced by non-operating activities, such as substantial net borrowing or other financing-related cash inflows available to equity holders.
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Price to FCFE Ratio, Current
Shockwave Medical Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 37,543,542 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 774,538) |
| FCFE per share | 20.63 |
| Current share price (P) | 330.00 |
| Valuation Ratio | |
| P/FCFE | 16.00 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | 34.57 |
| Elevance Health Inc. | 24.67 |
| Intuitive Surgical Inc. | 67.10 |
| Medtronic PLC | 31.58 |
| UnitedHealth Group Inc. | 21.83 |
| P/FCFE, Sector | |
| Health Care Equipment & Services | 21.53 |
| P/FCFE, Industry | |
| Health Care | 24.97 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Shockwave Medical Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 37,396,816 | 36,495,387 | 35,653,563 | 34,842,744 | 31,765,657 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 774,538) | 98,579) | 2,597) | (80,550) | (53,591) | |
| FCFE per share3 | 20.71 | 2.70 | 0.07 | -2.31 | -1.69 | |
| Share price1, 4 | 259.89 | 189.52 | 175.59 | 116.76 | 29.00 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 12.55 | 70.16 | 2,410.63 | — | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Abbott Laboratories | 76.56 | 26.11 | 24.52 | — | — | |
| Elevance Health Inc. | 16.04 | 14.26 | 11.07 | — | — | |
| Intuitive Surgical Inc. | 177.77 | 89.67 | 58.39 | — | — | |
| Medtronic PLC | 29.20 | 19.71 | 38.91 | — | — | |
| UnitedHealth Group Inc. | 15.33 | 12.57 | 20.11 | — | — | |
| P/FCFE, Sector | ||||||
| Health Care Equipment & Services | 22.95 | 16.47 | 22.14 | — | — | |
| P/FCFE, Industry | ||||||
| Health Care | 18.20 | 18.50 | 17.94 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 774,538,000 ÷ 37,396,816 = 20.71
4 Closing price as at the filing date of Shockwave Medical Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 259.89 ÷ 20.71 = 12.55
6 Click competitor name to see calculations.
The financial trajectory between 2019 and 2023 is characterized by a fundamental shift from negative free cash flow to equity (FCFE) toward substantial cash generation, coinciding with a significant appreciation in market valuation.
- Share Price Evolution
- A consistent upward trend is observed in the share price, which rose from 29.00 US$ in 2019 to 259.89 US$ by the end of 2023. This represents a sustained increase in market valuation over the five-year period.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share remained negative during 2019 and 2020, reaching a deficit of 2.31 US$ in 2020. A critical inflection point occurred in 2021, as FCFE turned positive at 0.07 US$. This growth accelerated aggressively in subsequent years, resulting in a substantial increase to 20.71 US$ in 2023, indicating a rapid scaling of operational cash efficiency.
- Price to FCFE (P/FCFE) Ratio Analysis
- The P/FCFE ratio exhibits a dramatic compression over the period it was calculable. In 2021, the ratio was exceptionally high at 2,410.63, reflecting a market valuation based on future growth expectations rather than current cash flow. As cash flow growth significantly outpaced the increase in share price, the ratio decreased to 70.16 in 2022 and further normalized to 12.55 in 2023. This downward trend signifies that the stock's valuation has become increasingly grounded in tangible cash flow generation.
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