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 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014
Net income 55,256  59,531  48,351  45,687  53,394  39,510 
Net noncash charges 17,623  (16,791) 20,797  20,139  16,610  13,156 
Changes in operating assets and liabilities (3,488) 34,694  (5,550) (2) 11,262  7,047 
Cash generated by operating activities 69,391  77,434  63,598  65,824  81,266  59,713 
Cash paid for interest, net of tax1 2,879  2,469  1,577  979  378  251 
Payments for acquisition of property, plant and equipment (10,495) (13,313) (12,451) (12,734) (11,247) (9,571)
Free cash flow to the firm (FCFF) 61,775  66,590  52,724  54,069  70,397  50,393 

Based on: 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), 10-K (filing date: 2014-10-27).

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 increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Interest Paid, Net of Tax

Apple Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014
Effective Income Tax Rate (EITR)
EITR1 15.90% 18.30% 24.60% 25.60% 26.40% 26.10%
Interest Paid, Net of Tax
Cash paid for interest, before tax 3,423  3,022  2,092  1,316  514  339 
Less: Cash paid for interest, tax2 544  553  515  337  136  88 
Cash paid for interest, net of tax 2,879  2,469  1,577  979  378  251 

Based on: 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), 10-K (filing date: 2014-10-27).

1 See details »

2 2019 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,423 × 15.90% = 544


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) 1,958,718 
Free cash flow to the firm (FCFF) 61,775 
Valuation Ratio
EV/FCFF 31.71
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 283.48
Analog Devices Inc. 22.03
Applied Materials Inc. 18.80
Broadcom Inc. 16.88
Cisco Systems Inc. 9.83
Intel Corp. 13.15
Lam Research Corp. 23.28
Micron Technology Inc. 16.07
NVIDIA Corp. 73.45
Qualcomm Inc. 20.23
Texas Instruments Inc. 21.89
EV/FCFF, Sector
Technology Hardware & Equipment 25.58
EV/FCFF, Industry
Technology 28.70

Based on: 10-K (filing date: 2019-10-31).

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

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

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,112,797  1,004,854  927,271  636,292  687,886  626,730 
Free cash flow to the firm (FCFF)2 61,775  66,590  52,724  54,069  70,397  50,393 
Valuation Ratio
EV/FCFF3 18.01 15.09 17.59 11.77 9.77 12.44
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 169.58 770.71 121.45
Analog Devices Inc. 21.68 16.04 36.93 16.91 21.52
Applied Materials Inc. 18.91 9.96 15.58 15.02 20.88 17.35
Broadcom Inc. 14.91 12.67 18.68 28.10 20.50 35.59
Cisco Systems Inc. 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. 9.83 10.36 11.51 9.72 15.85
Micron Technology Inc. 14.33 5.37 17.38 21.31 14.36
NVIDIA Corp. 27.83 47.75 37.50 12.85 11.58
Qualcomm Inc. 14.91 22.53 14.89 12.58 18.64 14.38
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: 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), 10-K (filing date: 2014-10-27).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 1,112,797 ÷ 61,775 = 18.01

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.