Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Apple Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
The financial trajectory from 2021 to 2026 reflects a period of cyclical volatility characterized by alternating annual growth and contraction, culminating in a significant expansion in the final period. A strong positive correlation is observed between cash generated by operating activities and free cash flow to the firm (FCFF), indicating that fluctuations in operating cash flow are the primary driver of FCFF variability.
- Operating Cash Flow Trends
- Cash generated by operating activities increased from US$ 104,038 million in 2021 to a peak of US$ 145,097 million in 2026. The growth pattern was non-linear, with declines noted in 2023 and 2025, although the subsequent recoveries in 2024 and 2026 established higher baseline values.
- Free Cash Flow to the Firm (FCFF) Performance
- FCFF exhibited a mirrored movement to operating cash flows, beginning at US$ 95,283 million in 2021 and reaching US$ 136,056 million by 2026. The most pronounced growth occurred between 2025 and 2026, representing a substantial increase of approximately 37.7% in a single fiscal year.
- Cash Conversion Analysis
- The narrow gap between operating cash flow and FCFF suggests a relatively stable capital expenditure requirement relative to the scale of operations. Throughout the observed period, FCFF consistently represented a high percentage of operating cash flow, typically exceeding 90%, demonstrating a high efficiency in converting operating liquidity into free cash flow available to all capital providers.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Interest Paid, Net of Tax
Apple Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
2 2026 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 0 × 17.00% = 0
An upward trend in net interest expenditures is evident during the period from 2021 to 2023. This growth reflects an increasing cash outflow associated with debt obligations, which accelerated significantly in the final year for which interest data is available.
- Net Interest Cash Outflows
- Cash paid for interest, net of tax, increased from US$ 2,330 million in 2021 to US$ 2,401 million in 2022. A more pronounced increase followed in 2023, with payments reaching US$ 3,244 million, representing a substantial rise in the net cost of borrowing compared to the previous two years.
- Effective Income Tax Rate Analysis
- The effective income tax rate exhibited notable volatility. After moving from 13.30% in 2021 to 14.70% in 2023, a significant spike to 24.10% occurred in 2024. Following this peak, the rate normalized to 15.60% in 2025 and reached 17.00% in 2026.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Enterprise Value to FCFF Ratio, Current
Apple Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 5,121,136) |
| Free cash flow to the firm (FCFF) | 136,056) |
| Valuation Ratio | |
| EV/FCFF | 37.64 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Arista Networks Inc. | 52.69 |
| Cisco Systems Inc. | 28.90 |
| Dell Technologies Inc. | 24.87 |
| Lumentum Holdings Inc. | 148.09 |
| Super Micro Computer Inc. | — |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | 49.84 |
| EV/FCFF, Industry | |
| Information Technology | 54.27 |
Based on: 10-K (reporting date: 2026-09-26).
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
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 4,848,076) | 4,040,273) | 3,411,822) | 2,797,951) | 2,550,236) | 2,520,606) | |
| Free cash flow to the firm (FCFF)2 | 136,056) | 98,767) | 108,807) | 102,828) | 113,844) | 95,283) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 35.63 | 40.91 | 31.36 | 27.21 | 22.40 | 26.45 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Arista Networks Inc. | — | 39.60 | 33.39 | 39.01 | 89.98 | 38.47 | |
| Cisco Systems Inc. | 31.96 | 19.06 | 19.55 | 10.98 | 13.55 | 15.50 | |
| Dell Technologies Inc. | 12.53 | 29.51 | 13.99 | 34.88 | 6.45 | 9.28 | |
| Lumentum Holdings Inc. | 239.89 | — | — | 72.26 | 14.52 | 8.11 | |
| Super Micro Computer Inc. | — | 16.54 | — | 21.06 | — | 25.04 | |
| EV/FCFF, Sector | |||||||
| Technology Hardware & Equipment | — | 37.81 | 30.41 | 24.97 | 20.80 | 23.54 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 43.70 | 39.04 | 34.01 | 26.47 | 27.37 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
3 2026 Calculation
EV/FCFF = EV ÷ FCFF
= 4,848,076 ÷ 136,056 = 35.63
4 Click competitor name to see calculations.
The financial trajectory between September 2021 and September 2026 is characterized by a significant expansion in Enterprise Value (EV) that consistently outpaces the growth of Free Cash Flow to the Firm (FCFF). This divergence has resulted in a general increase in the EV/FCFF valuation multiple, suggesting an increasing premium placed on the company's valuation relative to its realized cash flow generation over the period.
- Enterprise Value Growth
- A consistent and accelerating upward trend is observed in the Enterprise Value, which rose from US$ 2,520,606 million in 2021 to US$ 4,848,076 million by 2026. The growth rate intensified notably after 2023, indicating a substantial increase in the overall market valuation of the entity.
- Free Cash Flow Dynamics
- Free Cash Flow to the Firm exhibits a non-linear and volatile pattern. While the value increased from US$ 95,283 million in 2021 to a peak of US$ 136,056 million in 2026, intermittent contractions occurred in 2023 and 2025. This lack of steady growth in cash flows contrasts with the linear progression of the Enterprise Value.
- EV/FCFF Ratio Analysis
- The EV/FCFF ratio trended upward for the majority of the period, ascending from 26.45 in 2021 to a peak of 40.91 in 2025. This peak represents the point of highest valuation relative to cash flow performance. A subsequent decline to 35.63 in 2026 is observed, which is primarily attributed to a sharp increase in FCFF reaching US$ 136,056 million, thereby moderating the valuation multiple.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?