BP PLC (BP) | Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
BP 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 provided by operating activities | 20,397 | 22,154 | 13,616 | 27,716 | 38,095 | |
| Interest paid, net of tax | 720 | 742 | 912 | 604 | 809 | |
| Capital expenditure | (23,078) | (17,845) | (18,421) | (20,650) | (22,658) | |
| Proceeds from disposals of fixed assets | 9,991 | 3,500 | 7,492 | 1,715 | 918 | |
| Free cash flow to the firm (FCFF) | 8,030 | 8,551 | 3,599 | 9,385 | 17,164 |
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the BP PLC's suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | BP PLC's FCFF increased from 2010 to 2011 but then slightly declined from 2011 to 2012. |
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Enterprise Value to FCFF Ratio, Current
BP PLC, current EV/FCFF
| BP PLC | Oil & Gas | |
|---|---|---|
| Selected Financial Data (USD $ in millions) | ||
| Enterprise value (EV) | 167,148 | |
| Free cash flow to the firm (FCFF) | 8,030 | |
| Ratio | ||
| EV/FCFF | 20.82 | 48.49 |
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.
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Enterprise Value to FCFF Ratio, Historical
BP 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 | 159,972 | 177,084 | 175,709 | 201,192 | 137,633 | |
| Free cash flow to the firm (FCFF)2 | 8,030 | 8,551 | 3,599 | 9,385 | 17,164 | |
| EV/FCFF, Comparison to Industry | ||||||
| BP PLC3 | 19.92 | 20.71 | 48.82 | 21.44 | 8.02 | |
| Industry, Oil & Gas | 47.30 | 25.17 | 32.73 | 115.30 | 15.01 | |
2012 Calculations
3 EV/FCFF = EV ÷ FCFF
= 159,972 ÷ 8,030 = 19.92
| Ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | BP PLC's EV/FCFF ratio declined from 2010 to 2011 and from 2011 to 2012. |
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