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POSCO (PKX) | Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

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POSCO, FCFF calculation

USD $ in millions, translated from KRW ₩

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  12 months ended Dec 31, 2011 Dec 31, 2010
chart Profit attributable to owners of the controlling company
chart Add: Profit attributable to non-controlling interests
chart Add: Net noncash charges
chart Less: Changes in operating assets and liabilities
chart Net cash provided by operating activities
chart Add: Interest paid, net of tax
chart Less: Acquisition of property, plant and equipment
chart Add: Disposal of property, plant and equipment
chart Less: Acquisition of intangible assets
chart Add: Disposal of intangible assets
chart Free cash flow to the firm (FCFF)

Enterprise Value to FCFF Ratio, Current

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POSCO, current EV/FCFF

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  POSCO Basic Materials
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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POSCO, EV/FCFF calculation

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Enterprise value (EV)
chart Free cash flow to the firm (FCFF)
  EV/FCFF, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

2011 Calculations

1 EV/FCFF = EV ÷ FCFF
= ÷ =

May 24, 2012

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