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Canon Inc. (CAJ) | Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

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Canon Inc., FCFF calculation

USD $ in millions, translated from JPY ¥

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  12 months ended Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Net cash provided by operating activities
chart Add: Cash paid during the year for interest, net of tax
chart Less: Purchases of fixed assets
chart Add: Proceeds from sale of fixed assets
chart Free cash flow to the firm (FCFF)
Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Canon Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Canon Inc.'s FCFF increased from 2009 to 2010 but then declined significantly from 2010 to 2011.

Enterprise Value to FCFF Ratio, Current

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Canon Inc., current EV/FCFF

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  Canon Inc. Technology
Selected Financial Data (USD $ in millions)
Enterprise value (EV)  
Free cash flow to the firm (FCFF)  
Ratio
EV/FCFF

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

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Canon Inc., EV/FCFF calculation

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions, translated from JPY ¥)
chart Enterprise value (EV)
chart Free cash flow to the firm (FCFF)
  EV/FCFF, Comparison to Industry
chart Canon Inc.1
  Industry, Technology

2011 Calculations

1 EV/FCFF = EV ÷ FCFF
= ÷ =

Ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Canon Inc.'s EV/FCFF ratio declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level.

May 23, 2012

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