Twitter Inc., FCFE calculation

US$ in thousands

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).

Download chart

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.

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.	34.36
Comcast Corp.	10.20
Meta Platforms Inc.	28.71
Netflix Inc.	56.11
Walt Disney Co.	28.34
P/FCFE, Sector
Media & Entertainment	41.58
P/FCFE, Industry
Communication Services	35.78

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.

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 price^1, 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	—	—
Comcast Corp.	27.57	18.17	64.70	—	—
Meta Platforms Inc.	16.84	32.77	28.91	—	—
Netflix Inc.	—	81.38	116.48	—	—
Walt Disney Co.	—	18.20	55.35	—	—
P/FCFE, Sector
Media & Entertainment	29.77	27.24	36.47	—	—
P/FCFE, Industry
Communication Services	26.52	20.51	33.69	—	—

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.

Download chart

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.

Twitter Inc. (NYSE:TWTR)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical