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Medco Health Solutions Inc. (MHS) | Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

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Medco Health Solutions Inc., FCFF calculation

USD $ in thousands

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  12 months ended Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007
chart Net income
chart Add: Net noncash charges
chart Less: Net changes in assets and liabilities, net of acquisition effects
chart Net cash provided by operating activities
chart Add: Cash paid during the year for interest, net of tax
chart Less: Capital expenditures
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 Medco Health Solutions Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Medco Health Solutions Inc.'s FCFF declined from 2009 to 2010 and from 2010 to 2011.

Enterprise Value to FCFF Ratio, Current

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Medco Health Solutions Inc., current EV/FCFF

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  Medco Health Solutions Inc. Health Care
Selected Financial Data (USD $ in thousands)
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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Medco Health Solutions Inc., EV/FCFF calculation

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    Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007
  Selected Financial Data (USD $ in thousands)
chart Enterprise value (EV)
chart Free cash flow to the firm (FCFF)
  EV/FCFF, Comparison to Industry
chart Medco Health Solutions Inc.1
  Industry, Health Care

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. Medco Health Solutions Inc.'s EV/FCFF ratio increased from 2009 to 2010 and from 2010 to 2011.

May 23, 2012

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