Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
Abiomed Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Abiomed Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
Abiomed Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
- Net Cash Provided by Operating Activities
- The net cash generated from operating activities exhibited a consistent upward trend from March 31, 2017, through March 31, 2020, increasing from $115,116 thousand in 2017 to a peak of $314,920 thousand in 2020. This growth indicates improving operational cash generation capabilities over this period. However, in the subsequent years, 2021 and 2022, there is a noticeable decline to $274,578 thousand and $285,390 thousand respectively, which, despite being a reduction from the 2020 peak, still remains significantly higher than the levels seen in earlier years. This suggests some volatility or possibly increasing operational costs or changes in working capital.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm also shows a general increasing trend from 2017 to 2020, starting at $48,119 thousand and reaching $270,914 thousand by 2020. Similar to the operating cash flow pattern, the years 2021 and 2022 exhibit a decline in FCFF to $221,195 thousand and $249,627 thousand respectively. This decline following the 2020 peak may reflect increased capital expenditures, investments, or other financial considerations impacting free cash flow generation after that year.
- Overall Insights
- The financial performance over the six-year period reflects strong growth in cash-generating activities through 2020, followed by a moderate contraction in the last two years reported. The reduction in both operating cash flow and free cash flow after 2020 suggests changes in business dynamics or external factors affecting financial operations. Despite the decline, both metrics remain notably above the earlier years, indicating overall positive cash flow performance relative to the start of the period.
Interest Paid, Net of Tax
Abiomed Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
2 2022 Calculation
Cash paid for interest on capital lease obligation, tax = Cash paid for interest on capital lease obligation × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited considerable fluctuation during the analyzed periods. Initially, it stood at a high 43% in fiscal year 2017. This rate then experienced a significant decline, dropping sharply to 17.1% in 2018 and further plummeting to a notably low 1.6% in 2019. However, from 2020 onwards, the rate reversed this downward trend, rising to 21% in 2020 and maintaining a slight increase, reaching 21.8% in 2021 and 28.4% in 2022. This pattern suggests pronounced volatility in the company's tax expense relative to its income, potentially driven by changes in tax regulations, income levels, or tax planning strategies across these years.
- Cash Paid for Interest on Capital Lease Obligation, Net of Tax
- Data for cash paid for interest on capital lease obligations is only available for fiscal years 2017 and 2018, showing amounts of $202,000 and $250,000 respectively. The absence of data for subsequent years prevents further trend analysis. The slight increase between 2017 and 2018 may reflect changes in lease obligations or interest rates, but with limited data, comprehensive conclusions cannot be drawn.
Enterprise Value to FCFF Ratio, Current
Abiomed Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/FCFF, Sector | |
| Health Care Equipment & Services | |
| EV/FCFF, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2022-03-31).
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
Abiomed Inc., historical EV/FCFF calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Free cash flow to the firm (FCFF)2 | |||||||
| Valuation Ratio | |||||||
| EV/FCFF3 | |||||||
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Abbott Laboratories | |||||||
| CVS Health Corp. | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Health Care Equipment & Services | |||||||
| EV/FCFF, Industry | |||||||
| Health Care | |||||||
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited significant volatility over the period analyzed. Initially, it rose sharply from approximately 5.74 billion USD in 2017 to a peak of around 17.18 billion USD in 2018. Following this peak, the EV declined noticeably to about 11.36 billion USD in 2019, and continued to decrease to approximately 8.38 billion USD in 2020. Subsequently, EV increased again to nearly 12.1 billion USD in 2021 before declining once more to just under 10 billion USD in 2022. This pattern suggests fluctuating market perceptions or valuation adjustments over the years.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm showed a consistent upward trend throughout the analyzed years. Starting from roughly 48.1 million USD in 2017, FCFF nearly tripled to about 136.9 million USD in 2018, continued increasing to 208.2 million USD in 2019, and reached a higher level of 270.9 million USD in 2020. Although FCFF decreased slightly to 221.2 million USD in 2021, it rebounded to 249.6 million USD in 2022. Overall, FCFF growth indicates improving operational cash generation capability with minor fluctuations in the later years.
- EV/FCFF Ratio
- The EV/FCFF ratio demonstrated a marked decline from an elevated starting point of 119.3 in 2017 to a low of 30.94 in 2020. The ratio fell significantly between 2018 and 2020, reflecting a faster increase in FCFF relative to EV or a decrease in valuation multiples. After 2020, the ratio rose again to 54.7 in 2021 before declining to 39.99 in 2022. This indicates periods of valuation compression followed by partial expansion and subsequent moderation, which may be indicative of changing market sentiment, risk perception, or profitability expectations.