Stock Analysis on Net
Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Alphabet Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 73,795 59,972 76,033 40,269 34,343
Net noncash charges 31,796 33,758 17,142 23,028 19,358
Changes in assets and liabilities, net of effects of acquisitions (3,845) (2,235) (1,523) 1,827 819
Net cash provided by operating activities 101,746 91,495 91,652 65,124 54,520
Purchases of property and equipment (32,251) (31,485) (24,640) (22,281) (23,548)
Proceeds from issuance of debt, net of costs 10,790 52,872 20,199 11,761 317
Repayments of debt (11,550) (54,068) (21,435) (2,100) (585)
Free cash flow to equity (FCFE) 68,735 58,814 65,776 52,504 30,704

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Alphabet 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. Alphabet Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding 12,241,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 68,735
FCFE per share 5.62
Current share price (P) 192.96
Valuation Ratio
P/FCFE 34.36
Benchmarks
P/FCFE, Competitors1
Comcast Corp. 10.20
Meta Platforms Inc. 28.71
Netflix Inc. 56.11
Walt Disney Co. 28.34
P/FCFE, Sector
Media & Entertainment 31.66
P/FCFE, Industry
Communication Services 27.96

Based on: 10-K (reporting date: 2023-12-31).

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

Alphabet Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 12,433,000,000 12,807,000,000 13,219,426,420 13,482,733,300 13,745,721,800
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 68,735 58,814 65,776 52,504 30,704
FCFE per share3 5.53 4.59 4.98 3.89 2.23
Share price1, 4 141.80 105.22 148.04 103.50 72.35
Valuation Ratio
P/FCFE5 25.65 22.91 29.75 26.58 32.39
Benchmarks
P/FCFE, Competitors6
Comcast Corp. 12.89 12.26 27.57 18.17 64.70
Meta Platforms Inc. 23.53 17.26 16.84 32.77 28.91
Netflix Inc. 35.64 176.91 — 81.38 116.48
Walt Disney Co. 55.51 — — 18.20 55.35
P/FCFE, Sector
Media & Entertainment 24.75 23.67 29.77 27.24 36.47
P/FCFE, Industry
Communication Services 21.97 31.82 26.52 20.51 33.69

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 68,735,000,000 ÷ 12,433,000,000 = 5.53

4 Closing price as at the filing date of Alphabet Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 141.80 ÷ 5.53 = 25.65

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. Alphabet Inc. P/FCFE ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.