Price to FCFE (P/FCFE)
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Analysis of Debt
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Free Cash Flow to Equity (FCFE)
Western Digital Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
- Cash Flows from Operating Activities
- The net cash provided by operating activities showed a significant decline over the observed period. Beginning at $4,205 million in June 2018, the figure dropped sharply to $1,547 million in June 2019 and further declined to $824 million by July 2020. There was a partial recovery in the subsequent two years, reaching $1,898 million in July 2021 and $1,880 million in July 2022. However, this trend reversed dramatically in June 2023, with net cash from operating activities declining to a negative $408 million, indicating cash outflows from core operations.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity displayed persistent negativity after an initial moderate positive level. Starting at $631 million in June 2018, FCFE substantially decreased to $105 million in June 2019 and turned negative at $-805 million in July 2020. Despite a minimal positive turn at $9 million in July 2021, the FCFE fell back into negative territory with $-977 million in July 2022 and further worsened to $-1,234 million by June 2023. The overall trajectory reflects growing challenges in generating surplus cash flow available to equity holders.
- Overall Insights
- The data reveal a deteriorating liquidity position over the years, with operating cash flows showing volatility and ultimately shifting to negative in the latest period. The persistent negative free cash flow to equity suggests increasing financial strain and potential difficulties in funding operations or returning value to shareholders without external financing. The partial recovery in operating cash flows during 2021 and 2022 may indicate temporary operational improvements, but the subsequent decline in 2023 highlights underlying structural or market challenges impacting cash generation capacity.
Price to FCFE Ratio, Current
Western Digital Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | |
| Arista Networks Inc. | |
| Cisco Systems Inc. | |
| Dell Technologies Inc. | |
| Super Micro Computer Inc. | |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2023-06-30).
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
Western Digital Corp., historical P/FCFE calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 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 | |||||||
| Apple Inc. | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
| P/FCFE, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| P/FCFE, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Western Digital Corp. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited significant volatility over the analyzed periods. It started at a relatively high level of $63.81 in June 2018, then decreased steadily to $37.84 by July 2020. Afterward, the share price recovered to $63.24 in July 2021 before declining again to $40.42 in June 2023. This pattern indicates considerable fluctuations with an overall downward trend from 2018 to 2023, despite a notable rebound in 2021.
- Free Cash Flow to Equity (FCFE) Per Share
- The FCFE per share showed a declining trend from a positive $2.17 in June 2018 to negative values in multiple years, reaching -$3.83 by June 2023. After a steep drop to a negative -$2.66 in July 2020, there was a brief return to near breakeven at $0.03 in July 2021, followed by subsequent declines. This suggests deteriorating cash flow generation available to equity shareholders over the period, reflecting potential operational or financial challenges.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio displayed significant volatility and missing data in certain periods. It was relatively low at 29.46 in June 2018, sharply increased to 148.45 in June 2019, and then escalated dramatically to 2169.47 in July 2021. Owing to negative or missing FCFE values in other years, the ratio was not computed or available. High and rising P/FCFE ratios generally indicate the share price is high relative to free cash flow or that cash flow is weak or negative, contributing to increased valuation risk in those years.
- Overall Insights
- The financial data reveal a company experiencing challenges in maintaining positive free cash flow to equity, which correlates with share price volatility and occasionally elevated valuation multiples. The decline in FCFE per share in recent years alongside a falling share price suggests deteriorating financial performance or investor confidence. Meanwhile, the transient recovery in FCFE and share price in 2021 may indicate short-term operational improvements or market sentiment shifts. The elevated, volatile P/FCFE ratios emphasize a lack of consistent and robust free cash flow generation relative to market valuations during the period analyzed.