Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
EMC Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the EMC Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | EMC Corp. FCFF decreased from 2013 to 2014 and from 2014 to 2015. |
Interest Paid, Net of Tax
EMC Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
2 2015 Calculation
Interest paid, tax = Interest paid × EITR
= 138 × 24.60% = 34
Enterprise Value to FCFF Ratio, Current
EMC Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 54,750) |
| Free cash flow to the firm (FCFF) | 4,021) |
| Valuation Ratio | |
| EV/FCFF | 13.62 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | 215.22 |
| Analog Devices Inc. | 28.59 |
| Applied Materials Inc. | 22.09 |
| Broadcom Inc. | 33.90 |
| Intel Corp. | — |
| KLA Corp. | 27.99 |
| Lam Research Corp. | 25.16 |
| Micron Technology Inc. | — |
| NVIDIA Corp. | 79.93 |
| ON Semiconductor Corp. | 62.05 |
| Qualcomm Inc. | 17.56 |
| Texas Instruments Inc. | 101.72 |
Based on: 10-K (reporting date: 2015-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
EMC Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 49,565) | 56,338) | 49,998) | 45,643) | 54,456) | |
| Free cash flow to the firm (FCFF)2 | 4,021) | 5,138) | 5,592) | 5,049) | 4,481) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 12.33 | 10.96 | 8.94 | 9.04 | 12.15 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| ON Semiconductor Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
3 2015 Calculation
EV/FCFF = EV ÷ FCFF
= 49,565 ÷ 4,021 = 12.33
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | EMC Corp. EV/FCFF ratio increased from 2013 to 2014 and from 2014 to 2015. |