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Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Apple Inc., FCFF calculation
USD $ in millions
Based on: 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), 10-K (filing date: 2013-10-30).
| 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 declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level. |
Interest Paid, Net of Tax
Apple Inc., interest paid, net of tax calculation
USD $ in millions
Based on: 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), 10-K (filing date: 2013-10-30).
2018 Calculations
2 Cash paid for interest, tax = Cash paid for interest × EITR
= × =
Enterprise Value to FCFF Ratio, Current
Apple Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Cisco Systems Inc. | |
| HP Inc. | |
| Intel Corp. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | |
| EV/FCFF, Industry | |
| Technology | |
Based on: 10-K (filing date: 2018-11-05).
If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if 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
Based on: 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), 10-K (filing date: 2013-10-30).
2018 Calculations
3 EV/FCFF = EV ÷ FCFF
= ÷ =
| 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 2016 to 2017 but then slightly declined from 2017 to 2018. |
