.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Amgen Inc., FCFF calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income | |||||
| | Net noncash charges | |||||
| | Changes in operating assets and liabilities, net of acquisitions | |||||
| | Net cash provided by operating activities | |||||
| | Interest paid, net of tax1 | |||||
| | Interest costs capitalized, net of tax2 | |||||
| | Purchases of property, plant and equipment | |||||
| | Proceeds from sale of property, plant and equipment | |||||
| | Free cash flow to the firm (FCFF) |
1, 2 See Details »
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Amgen Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Amgen Inc.'s FCFF increased from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
Amgen Inc., interest paid, net of tax calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| Effective Income Tax Rate (EITR) | ||||||
| | EITR1 | % | % | % | % | % |
| Interest Paid, Net of Tax | ||||||
| | Interest paid, before tax | |||||
| | Less: Interest paid, tax2 | |||||
| | Interest paid, net of tax | |||||
| Interest Costs Capitalized, Net of Tax | ||||||
| | Interest costs capitalized, before tax | |||||
| | Less: Interest costs capitalized, tax3 | |||||
| | Interest costs capitalized, net of tax | |||||
2017 Calculations
2 Interest paid, tax = Interest paid × EITR
= × % =
3 Interest costs capitalized, tax = Interest costs capitalized × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
Amgen Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Abbott Laboratories | |
| AbbVie Inc. | |
| Allergan PLC | |
| Biogen Inc. | |
| Bristol-Myers Squibb Co. | |
| Celgene Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| EV/FCFF, Sector | |
| Pharmaceuticals & Biotechnology | |
| EV/FCFF, Industry | |
| Health Care | |
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
Amgen Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Abbott Laboratories | ||||||
| AbbVie Inc. | ||||||
| Allergan PLC | ||||||
| Biogen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Celgene Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Pharmaceuticals & Biotechnology | ||||||
| EV/FCFF, Industry | ||||||
| Health Care | ||||||
2017 Calculations
3 EV/FCFF = EV ÷ FCFF
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Amgen Inc.'s EV/FCFF ratio declined from 2015 to 2016 and from 2016 to 2017. |
