AstraZeneca PLC (AZN)

Free Cash Flow to The Firm (FCFF)

AstraZeneca PLC, FCFF calculation

USD $ in millions

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.

AstraZeneca PLC, current EV/FCFF

	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.

AstraZeneca PLC, EV/FCFF calculation

	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.