Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Apple Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Net income 99,803 94,680 57,411 55,256 59,531 48,351
Net noncash charges 21,148 14,269 17,573 17,623 (16,791) 20,797
Changes in operating assets and liabilities 1,200 (4,911) 5,690 (3,488) 34,694 (5,550)
Cash generated by operating activities 122,151 104,038 80,674 69,391 77,434 63,598
Cash paid for interest, net of tax1 2,401 2,330 2,570 2,879 2,469 1,577
Payments for acquisition of property, plant and equipment (10,708) (11,085) (7,309) (10,495) (13,313) (12,451)
Free cash flow to the firm (FCFF) 113,844 95,283 75,935 61,775 66,590 52,724

Based on: 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Apple Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Apple Inc. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

Apple Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Effective Income Tax Rate (EITR)
EITR1 16.20% 13.30% 14.40% 15.90% 18.30% 24.60%
Interest Paid, Net of Tax
Cash paid for interest, before tax 2,865 2,687 3,002 3,423 3,022 2,092
Less: Cash paid for interest, tax2 464 357 432 544 553 515
Cash paid for interest, net of tax 2,401 2,330 2,570 2,879 2,469 1,577

Based on: 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30).

1 See details »

2 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 2,865 × 16.20% = 464


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 2,737,248
Free cash flow to the firm (FCFF) 113,844
Valuation Ratio
EV/FCFF 24.04
Benchmarks
EV/FCFF, Competitors1
Arista Networks Inc. 118.70
Cisco Systems Inc. 10.23
Enphase Energy Inc. 22.98
Super Micro Computer, Inc. 21.25
EV/FCFF, Sector
Technology Hardware & Equipment 23.71
EV/FCFF, Industry
Information Technology 31.81

Based on: 10-K (reporting date: 2022-09-24).

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
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 2,550,236 2,520,606 1,872,970 1,112,797 1,004,854 927,271
Free cash flow to the firm (FCFF)2 113,844 95,283 75,935 61,775 66,590 52,724
Valuation Ratio
EV/FCFF3 22.40 26.45 24.67 18.01 15.09 17.59
Benchmarks
EV/FCFF, Competitors4
Arista Networks Inc. 89.96 38.46 28.99 15.17 37.54
Cisco Systems Inc. 13.46 15.47 10.35 12.56 14.32
Enphase Energy Inc. 41.06 65.09 124.80 56.08 58.01
Super Micro Computer, Inc. 25.07 3.78 18.10
EV/FCFF, Sector
Technology Hardware & Equipment 21.94 25.17 22.57 16.92 15.19
EV/FCFF, Industry
Information Technology 27.04 27.97 24.20 19.72 17.24

Based on: 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30).

1 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 2,550,236 ÷ 113,844 = 22.40

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. EV/FCFF ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.