Procter & Gamble Co., FCFF calculation

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Net earnings attributable to noncontrolling interests	85)	51)	46)	76)	69)	111)
Net noncash charges	3,330)	3,077)	3,648)	3,090)	10,908)	1,986)
Change in operating assets and liabilities	(1,220)	(1,147)	371)	1,210)	368)	3,020)
Operating activities	16,848)	16,723)	18,371)	17,403)	15,242)	14,867)
Cash payments for interest, net of tax¹	579)	371)	433)	359)	325)	415)
Capital expenditures	(3,062)	(3,156)	(2,787)	(3,073)	(3,347)	(3,717)
Free cash flow to the firm (FCFF)	14,365)	13,938)	16,017)	14,689)	12,220)	11,565)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Procter & Gamble Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Procter & Gamble Co. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Procter & Gamble Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Effective Income Tax Rate (EITR)
EITR¹	19.70%	17.80%	18.50%	17.20%	34.70%	21.50%
Interest Paid, Net of Tax
Cash payments for interest, before tax	721)	451)	531)	434)	497)	529)
Less: Cash payments for interest, tax²	142)	80)	98)	75)	172)	114)
Cash payments for interest, net of tax	579)	371)	433)	359)	325)	415)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ See details »

² 2023 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= 721 × 19.70% = 142

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Procter & Gamble Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	408,630)
Free cash flow to the firm (FCFF)	14,365)
Valuation Ratio
EV/FCFF	28.45
Benchmarks
EV/FCFF, Industry
Consumer Staples	31.25

Based on: 10-K (reporting date: 2023-06-30).

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.

Procter & Gamble Co., historical EV/FCFF calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	393,511)	371,203)	366,108)	349,722)	307,076)	226,602)
Free cash flow to the firm (FCFF)²	14,365)	13,938)	16,017)	14,689)	12,220)	11,565)
Valuation Ratio
EV/FCFF³	27.39	26.63	22.86	23.81	25.13	19.59
Benchmarks
EV/FCFF, Industry
Consumer Staples	28.47	29.57	20.78	22.85	23.31	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 393,511 ÷ 14,365 = 27.39

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Procter & Gamble Co. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.

Procter & Gamble Co. (NYSE:PG)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical