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Diageo PLC (DEO) | Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

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Diageo PLC, FCFF calculation

USD $ in millions, translated from GBP £

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  12 months ended Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
chart Profit for the year attributable to equity shareholders of the parent company
chart Add: Profit for the year attributable to non-controlling interests
chart Add: Net noncash charges
chart Less: Net movement in working capital
chart Net cash from operating activities
chart Add: Interest paid, net of tax
chart Less: Purchase of property, plant and equipment and computer software
chart Add: Disposal of property, plant and equipment and computer software
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 Diageo PLC's suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Diageo PLC's FCFF increased from 2009 to 2010 but then slightly declined from 2010 to 2011.

Enterprise Value to FCFF Ratio, Current

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Diageo PLC, current EV/FCFF

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  Diageo PLC Consumer Goods
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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Diageo PLC, EV/FCFF calculation

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    Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
  Selected Financial Data (USD $ in millions, translated from GBP £)
chart Enterprise value (EV)
chart Free cash flow to the firm (FCFF)
  EV/FCFF, Comparison to Industry
chart Diageo PLC1
  Industry, Consumer Goods

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. Diageo PLC'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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