Apple Inc., FCFF calculation

US$ in millions

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).

¹ See details »

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.

Apple Inc., interest paid, net of tax calculation

US$ in millions

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

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

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.

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

	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.

Apple Inc. (NASDAQ:AAPL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical