Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Twitter Inc., FCFE calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
The financial data indicates a general contraction in cash generation capacity from 2018 through 2021, characterized by significant volatility in the cash available to equity holders.
- Operating Cash Flow Trajectory
- Net cash provided by operating activities peaked in 2018 at 1,339,711 thousand US dollars. Subsequent years exhibited a consistent downward trend, with a notable decline to 632,689 thousand US dollars by December 31, 2021, representing a reduction of approximately 53% from the 2018 peak.
- Free Cash Flow to Equity (FCFE) Volatility
- FCFE demonstrated extreme instability over the analyzed period. After a sharp increase to 1,833,523 thousand US dollars in 2018, the value plummeted to 459,087 thousand US dollars in 2019, recovered to 1,090,962 thousand US dollars in 2020, and ultimately fell to a period low of 43,446 thousand US dollars in 2021.
- Analysis of Cash Flow Divergence
- A recurring discrepancy between operating cash flow and FCFE is observed. In 2018 and 2020, FCFE exceeded operating cash flow, suggesting significant non-operating cash inflows or a reduction in capital expenditures. Conversely, in 2019 and 2021, FCFE was substantially lower than operating cash flow. The most acute divergence occurred in 2021, where FCFE dropped to nearly zero despite operating activities generating 632,689 thousand US dollars, indicating a heavy allocation of funds toward capital expenditures or debt repayments during that fiscal year.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Price to FCFE Ratio, Current
Twitter Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 765,246,152 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 43,446) |
| FCFE per share | 0.06 |
| Current share price (P) | 39.34 |
| Valuation Ratio | |
| P/FCFE | 692.92 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | 33.51 |
| Comcast Corp. | 5.19 |
| Meta Platforms Inc. | 21.91 |
| Netflix Inc. | 35.74 |
| Walt Disney Co. | 31.81 |
| P/FCFE, Sector | |
| Media & Entertainment | 51.85 |
| P/FCFE, Industry | |
| Communication Services | 43.07 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Twitter Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 800,641,166 | 798,152,488 | 782,287,089 | 766,824,550 | 750,904,551 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 43,446) | 1,090,962) | 459,087) | 1,833,523) | 570,475) | |
| FCFE per share3 | 0.05 | 1.37 | 0.59 | 2.39 | 0.76 | |
| Share price1, 4 | 36.24 | 71.79 | 38.77 | 30.76 | 32.66 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 667.85 | 52.52 | 66.06 | 12.86 | 42.99 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | 29.75 | — | — | — | — | |
| Comcast Corp. | 27.57 | — | — | — | — | |
| Meta Platforms Inc. | 16.84 | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | 18.20 | — | — | — | |
| P/FCFE, Sector | ||||||
| Media & Entertainment | 29.77 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Communication Services | 26.52 | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 43,446,000 ÷ 800,641,166 = 0.05
4 Closing price as at the filing date of Twitter Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 36.24 ÷ 0.05 = 667.85
6 Click competitor name to see calculations.
The analysis of the valuation metrics from 2017 to 2021 reveals significant volatility in the Price to Free Cash Flow to Equity (P/FCFE) ratio, characterized by extreme fluctuations driven more by erratic cash flow performance than by share price movements.
- Share Price Trends
- The share price experienced a period of relative stability between 2017 and 2019, followed by a substantial peak in 2020 at 71.79 US$. However, by 2021, the price corrected sharply, returning to 36.24 US$, a level closely aligned with the 2017-2019 range.
- FCFE per Share Performance
- Free Cash Flow to Equity per share demonstrated a highly inconsistent trajectory. After a peak of 2.39 US$ in 2018, the value declined and fluctuated, ultimately collapsing to 0.05 US$ in 2021. This represents a near-total erosion of the per-share cash flow available to equity holders by the end of the observed period.
- P/FCFE Ratio Analysis
- The P/FCFE ratio exhibits an unstable pattern, moving from 42.99 in 2017 to a low of 12.86 in 2018, coinciding with the peak in FCFE. A subsequent upward trend occurred in 2019 and 2020, with the ratio reaching 66.06 and 52.52 respectively. The most notable anomaly occurred in 2021, where the ratio spiked to 667.85. This exponential increase was not driven by a surge in share price—which actually declined—but by the precipitous drop in FCFE per share, indicating that the market valuation became disconnected from the company's immediate cash generation capabilities.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?