Price to FCFE (P/FCFE)
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- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2013
- Debt to Equity since 2013
- Total Asset Turnover since 2013
- Analysis of Revenues
- Aggregate Accruals
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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).
- Net Cash Provided by Operating Activities
- There was an overall increasing trend from 2017 to 2019, with the value rising from 831,209 thousand US dollars in 2017 to a peak of 1,339,711 thousand US dollars in 2018. However, a slight decline became evident in 2019, followed by a more significant drop in 2020 and again in 2021. The value decreased to 992,870 thousand US dollars in 2020 and further declined to 632,689 thousand US dollars in 2021. This indicates a reduction in cash generated from core operational activities over the last two years of the period analyzed.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced significant fluctuations throughout the period. It initially rose sharply from 570,475 thousand US dollars in 2017 to a high of 1,833,523 thousand US dollars in 2018, indicating a strong increase in cash available to equity holders. However, the subsequent year saw a considerable decrease to 459,087 thousand US dollars in 2019. In 2020, FCFE showed a recovery to 1,090,962 thousand US dollars but dramatically declined again in 2021 to only 43,446 thousand US dollars. This volatility suggests variability in financing activities and investment cash flows affecting funds available to equity holders.
- Overall Observations
- Both operating cash flow and FCFE peaked around 2018, followed by noticeable declines and high volatility in later years. The decline in operating cash flow from 2019 onwards may point to operational challenges or changes in working capital management. Meanwhile, the substantial drops and rebounds in FCFE highlight inconsistent free cash generation available to equity investors, which could impact dividend policy and investment capacity. The sharp reduction in FCFE in 2021 is particularly significant and may warrant further investigation into underlying causes.
Price to FCFE Ratio, Current
Twitter Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Netflix Inc. | |
| Take-Two Interactive Software Inc. | |
| Walt Disney Co. | |
| P/FCFE, Sector | |
| Media & Entertainment | |
| P/FCFE, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Twitter Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/FCFE, Sector | ||||||
| Media & Entertainment | ||||||
| P/FCFE, Industry | ||||||
| Communication Services | ||||||
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
= ÷ =
4 Closing price as at the filing date of Twitter Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price
- The share price experienced initial volatility, decreasing from $32.66 in 2017 to $30.76 in 2018. It then increased substantially to $38.77 in 2019, followed by a sharp rise to $71.79 in 2020. However, in 2021, the share price declined significantly to $36.24, nearly halving from the previous year’s peak.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share displayed considerable fluctuations over the period. It increased markedly from $0.76 in 2017 to $2.39 in 2018, dropped sharply to $0.59 in 2019, rebounded to $1.37 in 2020, and then declined sharply to $0.05 in 2021. The large drop in 2021 suggests a significant reduction in cash available to equity shareholders that year.
- Price to Free Cash Flow to Equity Ratio (P/FCFE)
- The P/FCFE ratio showed extreme variability across the years. It decreased from a high of 42.99 in 2017 to 12.86 in 2018, indicating improved valuation relative to free cash flow. Subsequently, it rose markedly to 66.06 in 2019 and remained elevated at 52.52 in 2020. In 2021, the ratio surged dramatically to 667.85, reflecting the combination of a reduced FCFE per share and a still significant share price. This sharp increase indicates a potential overvaluation relative to free cash flow or a notable decline in cash earnings.