Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
Advanced Micro Devices Inc. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Advanced Micro Devices Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
Advanced Micro Devices Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities demonstrated a significant increase from 1,071 million US dollars in 2020 to a peak of 3,565 million US dollars in 2022. This was followed by a notable decline to 1,667 million in 2023, before recovering to 3,041 million in 2024. The overall trend indicates considerable volatility but with an upward trajectory over the five-year period.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm followed a pattern similar to operating cash flow. It started at 801 million US dollars in 2020, increased sharply to 3,242 million in 2021, and remained relatively stable at 3,182 million in 2022. A substantial drop occurred in 2023, with FCFF falling to 1,187 million, before rebounding to 2,463 million in 2024. This fluctuation suggests challenges affecting capital expenditure or operational efficiencies during this timeframe.
- Overall Insights
- Both key measures show a strong growth phase through 2021 and 2022, likely reflecting improved operational performance and efficient capital management. The downturn in 2023 for both operating cash flow and FCFF signals potential operational setbacks or increased investments that impacted cash generation negatively. However, the recovery in 2024 indicates a positive adjustment or improved cash generation capabilities. The periodic variability highlights the importance of monitoring cash flow management and underlying operational factors to sustain financial health.
Interest Paid, Net of Tax
Advanced Micro Devices Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
2 2024 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= × =
- Effective income tax rate (EITR)
- The effective income tax rate exhibited variability over the five-year period. It started at 21% in 2020, decreased to a lower point of 14% in 2021, then returned to 21% in 2022 and 2023 before declining slightly to 18.84% in 2024. This fluctuation suggests changes in tax planning, regulatory environment, or profitability allocation across jurisdictions.
- Cash paid during the year for interest, net of tax
- The cash paid for interest, net of tax, showed an upward trend from 24 million US dollars in 2020 to a peak of 67 million US dollars in 2022. It then slightly decreased to 66 million US dollars in 2023 and further to 58 million US dollars in 2024. Despite the reduction in the last two years, the overall increase relative to 2020 indicates rising interest expenses, potentially from higher debt levels or increased interest rates.
Enterprise Value to FCFF Ratio, Current
Advanced Micro Devices Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-12-28).
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
Advanced Micro Devices Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| EV/FCFF, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced an overall upward trend from 2020 to 2024. It increased significantly from approximately $101.8 billion in 2020 to a peak of nearly $267.6 billion in 2023, before contracting to $178.1 billion in 2024. This fluctuation indicates substantial shifts in market valuation or changes in capital structure over the five-year period.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm showed variability during the period but generally increased compared to the starting value. Beginning at $801 million in 2020, FCFF peaked in 2021 at $3.2 billion and remained at similar levels in 2022. It then decreased noticeably in 2023 to $1.2 billion but rebounded to $2.5 billion by the end of 2024. This pattern suggests fluctuations in operational efficiency or investment activities impacting cash generation.
- EV/FCFF Ratio
- The EV to FCFF ratio, a valuation metric reflecting how the market values company cash flow, demonstrated significant volatility. Starting from an extremely high ratio of nearly 127 in 2020, it declined substantially to around 39 by the end of 2022, indicating improved valuation relative to free cash flow. However, in 2023, the ratio surged dramatically to over 225, reflecting either an increase in enterprise value, a decrease in free cash flow, or both. This ratio then decreased again to approximately 72 in 2024, suggesting partial normalization but still a relatively high premium on the firm's cash flow compared to earlier years.
- Overall Insights
- The data reveals a dynamic financial environment with marked volatility in both enterprise value and free cash flow. The peak in enterprise value in 2023 and the corresponding spike in the EV/FCFF ratio suggest heightened market expectations or external factors influencing valuation that year. The fluctuation in FCFF indicates variability in cash-generating ability, possibly related to operational changes or external economic conditions. The substantial changes in valuation multiples imply shifting investor sentiment and changing risk perceptions during the analysed period.