Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
IQVIA 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 demonstrates a generally upward trend from 2018 to 2021, increasing from 1,254 million to a peak of 2,942 million. This growth indicates improving operational cash generation capabilities. However, in 2022, there is a noticeable decline to 2,260 million, reflecting a reduction of approximately 23% from the previous year. Despite the decrease, the 2022 figure remains significantly higher than the values recorded in 2018 and 2019.
- Free cash flow to equity (FCFE)
- The free cash flow to equity shows a less consistent trajectory compared to operating cash flow. It starts at 1,788 million in 2018, declines to 1,535 million in 2019, then gradually rises through 2020 and 2021, reaching 2,332 million. In 2022, FCFE further increases to 2,522 million, representing the highest value in the observed period. This upward movement in FCFE during the latter years suggests improved cash available to shareholders, potentially driven by factors such as capital expenditure management or financing activities.
- Comparative assessment
- While both cash flow metrics generally reflect positive cash generation, the divergence in trends during 2022 is notable; net operating cash flow decreased, whereas FCFE increased. This divergence may suggest changes in the company's investing and financing activities, affecting the free cash flow available to equity holders. Overall, the data points to a company with strengthening cash flow performance over the medium term, despite the recent operational cash flow contraction.
Price to FCFE Ratio, Current
IQVIA Holdings Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 182,500,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 2,522) |
| FCFE per share | 13.82 |
| Current share price (P) | 180.01 |
| Valuation Ratio | |
| P/FCFE | 13.03 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 13.98 |
| Amgen Inc. | 26.30 |
| Bristol-Myers Squibb Co. | 3.88 |
| Danaher Corp. | 39.15 |
| Eli Lilly & Co. | 57.33 |
| Gilead Sciences Inc. | 11.86 |
| Johnson & Johnson | 13.76 |
| Merck & Co. Inc. | 9.89 |
| Pfizer Inc. | 52.58 |
| Regeneron Pharmaceuticals Inc. | 16.39 |
| Thermo Fisher Scientific Inc. | 35.79 |
| Vertex Pharmaceuticals Inc. | — |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 21.26 |
| P/FCFE, Industry | |
| Health Care | 18.93 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
IQVIA Holdings Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 185,722,621 | 190,485,264 | 191,281,286 | 192,339,093 | 197,599,861 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 2,522) | 2,332) | 1,652) | 1,535) | 1,788) | |
| FCFE per share3 | 13.58 | 12.24 | 8.64 | 7.98 | 9.05 | |
| Share price1, 4 | 227.03 | 232.18 | 192.66 | 165.42 | 141.49 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 16.72 | 18.97 | 22.31 | 20.73 | 15.64 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 22.66 | 18.76 | 13.16 | — | — | |
| Amgen Inc. | 8.32 | 13.52 | 11.06 | — | — | |
| Bristol-Myers Squibb Co. | 22.85 | 16.17 | 7.80 | — | — | |
| Danaher Corp. | 32.04 | 20.75 | 44.62 | — | — | |
| Eli Lilly & Co. | 60.51 | 35.17 | 36.62 | — | — | |
| Gilead Sciences Inc. | 15.22 | 12.70 | 5.98 | — | — | |
| Johnson & Johnson | 16.73 | 23.28 | 15.60 | — | — | |
| Merck & Co. Inc. | 22.40 | 18.72 | 17.85 | — | — | |
| Pfizer Inc. | 10.56 | 8.88 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 19.29 | 10.35 | 13.30 | — | — | |
| Thermo Fisher Scientific Inc. | 27.98 | 13.44 | 18.58 | — | — | |
| Vertex Pharmaceuticals Inc. | 19.91 | 26.08 | 18.46 | — | — | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 19.28 | 16.49 | 17.09 | — | — | |
| P/FCFE, Industry | ||||||
| Health Care | 18.40 | 17.94 | 17.51 | — | — | |
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
= 2,522,000,000 ÷ 185,722,621 = 13.58
4 Closing price as at the filing date of IQVIA Holdings Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 227.03 ÷ 13.58 = 16.72
6 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a consistent upward trend from 2018 through 2021, increasing from $141.49 to $232.18. However, in 2022, there was a slight decline to $227.03, indicating a minor correction after several years of growth.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed fluctuation over the period. It decreased from $9.05 in 2018 to $7.98 in 2019, suggesting a contraction in free cash flow available to equity holders. Subsequently, it recovered and grew steadily from 2020 to 2022, reaching $13.58, which marks a significant increase from the initial value in 2018.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio initially rose from 15.64 in 2018 to a peak of 22.31 in 2020. This suggests that the market was valuing the company at an increasing premium relative to its free cash flow per share during that time. From 2020 onward, the ratio decreased steadily to 16.72 in 2022, indicating a reduction in valuation multiples possibly due to the rise in FCFE per share outpacing the share price growth during this period.