Stock Analysis on Net

Twitter Inc. (NYSE:TWTR)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Twitter Inc., FCFE calculation

US$ in thousands

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) (221,409) (1,135,626) 1,465,659  1,205,596  (108,063)
Net noncash charges 849,065  2,153,091  (180,995) 44,793  971,511 
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions 5,033  (24,595) 18,700  89,322  (32,239)
Net cash provided by operating activities 632,689  992,870  1,303,364  1,339,711  831,209 
Purchases of property and equipment (1,011,546) (873,354) (540,688) (483,934) (160,742)
Proceeds from sales of property and equipment 8,462  9,170  6,158  13,070  2,783 
Proceeds from issuance of convertible notes 1,437,500  1,000,000  —  1,150,000  — 
Proceeds from issuance of senior notes —  —  700,000  —  — 
Purchases of convertible note hedges (213,469) —  —  (267,950) — 
Proceeds from issuance of warrants concurrent with note hedges 161,144  —  —  186,760  — 
Debt issuance costs (16,769) (14,662) (8,070) (13,783) — 
Repayment of convertible notes (954,000) —  (935,000) —  — 
Payments of finance lease obligations (565) (23,062) (66,677) (90,351) (102,775)
Free cash flow to equity (FCFE) 43,446  1,090,962  459,087  1,833,523  570,475 

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Twitter Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Twitter Inc. FCFE increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to FCFE Ratio, Current

Twitter Inc., current P/FCFE calculation, comparison to benchmarks

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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) 51.30
Valuation Ratio
P/FCFE 903.58
Benchmarks
P/FCFE, Competitors1
Alphabet Inc. 20.27
Charter Communications Inc. 3.05
Comcast Corp. 18.73
Meta Platforms Inc. 9.72
Netflix Inc.
Walt Disney Co.
P/FCFE, Sector
Media & Entertainment 17.58
P/FCFE, Industry
Communication Services 16.67

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

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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 26.58 32.39 34.99 31.54
Charter Communications Inc. 5.88 11.52 10.04 13.17 7.75
Comcast Corp. 31.29 21.40 100.99 3.41 14.93
Meta Platforms Inc. 16.84 32.77 28.91 30.97 32.08
Netflix Inc. 81.38 116.48 134.01 120.00
Walt Disney Co. 18.20 55.35 23.22 12.49
P/FCFE, Sector
Media & Entertainment 26.95 26.55 33.19 18.04 23.67
P/FCFE, Industry
Communication Services 24.63 20.42 31.51 19.07 16.71

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.

2 See details »

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.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Twitter Inc. P/FCFE ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.