Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Las Vegas Sands Corp., 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).
A significant deterioration in liquidity and cash generation is evident between 2018 and 2022. Both net cash generated from operating activities and free cash flow to equity (FCFE) shifted from strong positive positions to sustained negative values, indicating a fundamental shift in the organization's ability to generate internal capital.
- Operating Cash Flow Trends
- Net cash generated from operating activities experienced a precipitous decline, falling from 4,701 million USD in 2018 to a deficit of 1,312 million USD in 2020. While a partial recovery was noted in 2021 with a reduced deficit of 243 million USD, the trend reversed in 2022, with operating cash flow falling further to negative 944 million USD. This trajectory suggests persistent operational challenges in maintaining positive cash inflows from core business activities.
- Free Cash Flow to Equity (FCFE) Analysis
- FCFE mirrored the decline seen in operating activities, starting at a peak of 6,054 million USD in 2018 before dropping to 2,159 million USD in 2019. The metric turned negative in 2020, reaching negative 1,194 million USD. Although losses narrowed to negative 398 million USD in 2021 and negative 463 million USD in 2022, the company remained unable to return value to shareholders or fund growth through equity-based cash flows during the latter three years of the period.
- Comparative Relationship
- In 2018, FCFE exceeded operating cash flow by 1,353 million USD, suggesting a period of significant net borrowing or asset divestitures that augmented the cash available to equity holders. However, from 2020 through 2022, both metrics remained consistently negative, confirming a period of cash consumption where operational deficits directly impaired equity value.
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Price to FCFE Ratio, Current
Las Vegas Sands Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 764,490,874 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | (463) |
| FCFE per share | -0.61 |
| Current share price (P) | 45.32 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Airbnb Inc. | 20.44 |
| Booking Holdings Inc. | 15.80 |
| Chipotle Mexican Grill Inc. | 27.39 |
| DoorDash, Inc. | 21.67 |
| McDonald’s Corp. | 23.53 |
| Starbucks Corp. | 36.84 |
| P/FCFE, Sector | |
| Consumer Services | 27.88 |
| P/FCFE, Industry | |
| Consumer Discretionary | 66.21 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Las Vegas Sands Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 764,273,371 | 763,989,752 | 763,842,938 | 763,684,915 | 775,051,979 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | (463) | (398) | (1,194) | 2,159) | 6,054) | |
| FCFE per share3 | -0.61 | -0.52 | -1.56 | 2.83 | 7.81 | |
| Share price1, 4 | 58.08 | 44.20 | 55.57 | 66.80 | 61.61 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | — | — | 23.63 | 7.89 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Airbnb Inc. | 24.76 | 54.32 | — | — | — | |
| Booking Holdings Inc. | 11.52 | 69.02 | — | — | — | |
| Chipotle Mexican Grill Inc. | 52.59 | 51.88 | — | — | — | |
| DoorDash, Inc. | 1,011.74 | 292.52 | — | — | — | |
| McDonald’s Corp. | 28.85 | 30.21 | — | — | — | |
| Starbucks Corp. | 34.82 | 45.80 | 20.79 | — | — | |
| P/FCFE, Sector | ||||||
| Consumer Services | 24.72 | 45.10 | — | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 36.45 | 83.41 | — | — | — | |
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
= -463,000,000 ÷ 764,273,371 = -0.61
4 Closing price as at the filing date of Las Vegas Sands Corp. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 58.08 ÷ -0.61 = —
6 Click competitor name to see calculations.
The financial data from 2018 to 2022 reveals a significant deterioration in cash flow generation capabilities relative to the equity value. While the share price exhibited volatility, the Free Cash Flow to Equity (FCFE) per share underwent a severe decline, transitioning from positive territory to a sustained negative trend starting in 2020.
- FCFE per Share Performance
- A sharp downward trajectory is observed in FCFE per share, which plummeted from 7.81 USD in 2018 to 2.83 USD in 2019. This decline accelerated in 2020, with the value turning negative at -1.56 USD and remaining negative through 2022, ending at -0.61 USD. This pattern indicates a period where cash outflows for capital expenditures or debt repayments exceeded cash flows from operations.
- Price to FCFE (P/FCFE) Ratio Dynamics
- The P/FCFE ratio experienced an aggressive expansion from 7.89 in 2018 to 23.63 in 2019. This increase was driven by a substantial drop in FCFE per share while the share price concurrently rose. From 2020 through 2022, the ratio became mathematically inapplicable as FCFE per share remained negative, rendering the metric unavailable for valuation purposes during this period.
- Share Price Volatility
- The share price demonstrated relative resilience compared to the collapse of cash flows, although a clear dip occurred between 2019 and 2021, falling from 66.80 USD to 44.20 USD. A recovery phase is noted in 2022, with the price ascending to 58.08 USD, despite the continued presence of negative FCFE per share.
The divergence between the share price and FCFE suggests that market valuation during the later years was likely supported by factors other than immediate free cash flow availability, as the company struggled to generate positive cash returns for equity holders from 2020 onward.
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