Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Apple Inc. (NASDAQ:AAPL)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Apple Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Net noncash charges 17,573  17,623  (16,791) 20,797  20,139  16,610 
Changes in operating assets and liabilities 5,690  (3,488) 34,694  (5,550) (2) 11,262 
Cash generated by operating activities 80,674  69,391  77,434  63,598  65,824  81,266 
Cash paid for interest, net of tax1 2,570  2,879  2,469  1,577  979  378 
Payments for acquisition of property, plant and equipment (7,309) (10,495) (13,313) (12,451) (12,734) (11,247)
Free cash flow to the firm (FCFF) 75,935  61,775  66,590  52,724  54,069  70,397 

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 See details »

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Apple Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Apple Inc.’s FCFF decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Interest Paid, Net of Tax

Apple Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Effective Income Tax Rate (EITR)
EITR1 14.40% 15.90% 18.30% 24.60% 25.60% 26.40%
Interest Paid, Net of Tax
Cash paid for interest, before tax 3,002  3,423  3,022  2,092  1,316  514 
Less: Cash paid for interest, tax2 432  544  553  515  337  136 
Cash paid for interest, net of tax 2,570  2,879  2,469  1,577  979  378 

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 See details »

2 2020 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,002 × 14.40% = 432

Enterprise Value to FCFF Ratio, Current

Apple Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 2,213,195 
Free cash flow to the firm (FCFF) 75,935 
Valuation Ratio
EV/FCFF 29.15
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 322.85
Analog Devices Inc. 31.26
Applied Materials Inc. 27.00
Broadcom Inc. 17.08
Cisco Systems Inc. 11.49
Intel Corp. 14.56
Lam Research Corp. 38.31
Micron Technology Inc. 3,688.31
NVIDIA Corp. 73.55
Qualcomm Inc. 38.29
Texas Instruments Inc. 26.61
EV/FCFF, Sector
Technology Hardware & Equipment 29.64
EV/FCFF, Industry
Technology 31.44

Based on: 10-K (filing date: 2020-10-30).

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

Apple Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,872,309  1,112,797  1,004,854  927,271  636,292  687,886 
Free cash flow to the firm (FCFF)2 75,935  61,775  66,590  52,724  54,069  70,397 
Valuation Ratio
EV/FCFF3 24.66 18.01 15.09 17.59 11.77 9.77
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. — 169.58 — 770.71 121.45 —
Analog Devices Inc. 27.12 21.68 16.04 36.93 16.91 21.52
Applied Materials Inc. 22.52 18.91 9.96 15.58 15.02 20.88
Broadcom Inc. 16.52 14.91 12.67 18.68 28.10 20.50
Cisco Systems Inc. 10.35 12.56 14.32 8.85 9.16 8.20
Intel Corp. — 17.38 15.50 20.45 14.08 11.01
Lam Research Corp. 25.87 9.83 10.36 11.51 9.72 15.85
Micron Technology Inc. 2,354.03 14.33 5.37 17.38 — 21.31
NVIDIA Corp. 41.64 27.83 47.75 37.50 12.85 11.58
Qualcomm Inc. 30.89 14.91 22.53 14.89 12.58 18.64
Texas Instruments Inc. — 20.75 16.49 21.57 18.62 14.16
EV/FCFF, Sector
Technology Hardware & Equipment — 17.41 15.25 17.37 13.52 10.86
EV/FCFF, Industry
Technology — 21.26 19.17 19.36 15.65 14.15

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 1,872,309 ÷ 75,935 = 24.66

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Apple Inc.’s EV/FCFF ratio increased from 2018 to 2019 and from 2019 to 2020.