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AstraZeneca PLC (AZN) | Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

AstraZeneca PLC, FCFF calculation

USD $ in millions

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  12 months ended Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Net cash inflow from operating activities 7,100  7,992  10,854  11,852  8,891 
Interest paid, net of tax 446  444  471  446  487 
Purchase of property, plant and equipment (672) (839) (791) (962) (1,095)
Disposal of property, plant and equipment 199  102  83  138  38 
Purchase of intangible assets (3,947) (458) (1,390) (624) (2,944)
Disposal of intangible assets 210  269 
Free cash flow to the firm (FCFF) 3,126  7,241  9,437  11,119  5,377 
Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the AstraZeneca PLC's suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. AstraZeneca PLC's FCFF declined from 2010 to 2011 and from 2011 to 2012.

Enterprise Value to FCFF Ratio, Current

AstraZeneca PLC, current EV/FCFF

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  AstraZeneca PLC Health Care
Selected Financial Data (USD $ in millions)
Enterprise value (EV) 65,562   
Free cash flow to the firm (FCFF) 3,126   
Ratio
EV/FCFF 20.97 15.51

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

AstraZeneca PLC, EV/FCFF calculation

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    Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
  Selected Financial Data (USD $ in millions)
Enterprise value (EV)1 63,866  55,465  67,179  64,506  57,425 
Free cash flow to the firm (FCFF)2 3,126  7,241  9,437  11,119  5,377 
  EV/FCFF, Comparison to Industry
AstraZeneca PLC3 20.43 7.66 7.12 5.80 10.68
  Industry, Health Care 14.24 11.19 10.93 11.80 10.04

2012 Calculations

3 EV/FCFF = EV ÷ FCFF
= 63,866 ÷ 3,126 = 20.43

Ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. AstraZeneca PLC's EV/FCFF ratio increased from 2010 to 2011 and from 2011 to 2012.