Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Trade Desk Inc., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Cash Provided by Operating Activities
- Over the analyzed period, net cash provided by operating activities exhibits a positive and generally upward trend. Starting at $405,069 thousand at the end of 2020, there is a slight decline observed in 2021 to $378,513 thousand. However, subsequent years show substantial increases, with a significant rise to $548,734 thousand in 2022 and continued growth through 2023 and 2024, reaching $739,456 thousand. This pattern indicates strengthening operational efficiency and cash generation capacity over the latter part of the period.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity also demonstrates an overall increasing trend, mirroring the operational cash flow pattern but with somewhat less volatility. From $324,955 thousand at the end of 2020, there is a marginal decline to $316,616 thousand in 2021. Following this, the FCFE increases notably each year, reaching $456,849 thousand in 2022, followed by $543,302 thousand in 2023, and further growth to $632,394 thousand in 2024. This steady improvement suggests enhanced capacity to generate cash available to equity shareholders, which may support dividends, share repurchases, or debt reduction.
- Overall Financial Trends
- Both key cash flow indicators reflect improving liquidity and operational strength through the recent years. The initial dip in 2021 may indicate temporary constraints or investment-related cash outflows, but the subsequent recovery and growth are strong. The increasing divergence between operating cash flow and FCFE over time implies potentially higher reinvestment or changing capital structure dynamics, but both measures consistently improve by the end of the period.
Price to FCFE Ratio, Current
Trade Desk Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 488,942,869 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 632,394) |
| FCFE per share | 1.29 |
| Current share price (P) | 46.87 |
| Valuation Ratio | |
| P/FCFE | 36.24 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | 40.69 |
| Charter Communications Inc. | 87.32 |
| Comcast Corp. | 7.66 |
| Meta Platforms Inc. | 30.56 |
| Netflix Inc. | 61.52 |
| Walt Disney Co. | 28.49 |
| P/FCFE, Sector | |
| Media & Entertainment | 34.53 |
| P/FCFE, Industry | |
| Communication Services | 32.23 |
Based on: 10-K (reporting date: 2024-12-31).
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
Trade Desk Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 496,088,557 | 488,936,831 | 490,794,798 | 484,832,580 | 473,796,260 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 632,394) | 543,302) | 456,849) | 316,616) | 324,955) | |
| FCFE per share3 | 1.27 | 1.11 | 0.93 | 0.65 | 0.69 | |
| Share price1, 4 | 72.06 | 75.71 | 66.30 | 80.91 | 90.34 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 56.53 | 68.13 | 71.23 | 123.90 | 131.72 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | 31.99 | 25.65 | 22.91 | 29.75 | 26.58 | |
| Charter Communications Inc. | 119.03 | 13.59 | 5.10 | 5.88 | 11.52 | |
| Comcast Corp. | 8.35 | 12.89 | 12.26 | 27.57 | 18.17 | |
| Meta Platforms Inc. | 27.83 | 23.53 | 17.26 | 16.84 | 32.77 | |
| Netflix Inc. | 49.99 | 35.64 | 176.91 | — | 81.38 | |
| Walt Disney Co. | 27.60 | 55.51 | — | — | 18.20 | |
| P/FCFE, Sector | ||||||
| Media & Entertainment | 29.31 | 24.65 | 21.89 | 26.76 | 26.15 | |
| P/FCFE, Industry | ||||||
| Communication Services | 27.68 | 21.95 | 28.88 | 24.51 | 20.20 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 632,394,000 ÷ 496,088,557 = 1.27
4 Closing price as at the filing date of Trade Desk Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 72.06 ÷ 1.27 = 56.53
6 Click competitor name to see calculations.
The analysis of the provided financial data over the five-year period reveals several notable trends regarding share price, Free Cash Flow to Equity (FCFE) per share, and the Price to FCFE (P/FCFE) ratio.
- Share Price Trend
- The share price exhibited a declining trend from 2020 to 2022, decreasing from $90.34 to $66.3. In 2023, it showed some recovery to $75.71 but then slightly decreased again to $72.06 in 2024. Overall, the share price experienced a reduction over the five-year period with some volatility.
- FCFE per Share Trend
- The FCFE per share demonstrated a consistent upward trajectory throughout the period. Starting at $0.69 in 2020, it slightly decreased to $0.65 in 2021 but then increased steadily to $0.93 in 2022, $1.11 in 2023, and $1.27 in 2024. This reflects improving free cash flow available to equity holders over time.
- P/FCFE Ratio Trend
- The P/FCFE ratio decreased substantially from 131.72 in 2020 to 56.53 in 2024. This decline indicates that the market’s valuation multiple relative to the company's FCFE per share became more conservative over time. The ratio shows a significant drop especially between 2021 and 2022, aligning with the rise in FCFE per share, despite declining share prices.
In summary, while the company's share price experienced a downward trend with some partial recovery, its FCFE per share grew consistently, reflecting improved cash generation capabilities. Concurrently, the declining P/FCFE ratio suggests a market reassessment that reduced valuation multiples over the years, potentially indicating increased caution or changing market conditions impacting investor sentiment.