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: 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), 10-K (reporting date: 2020-09-26).
The financial data over the six-year period reveals notable trends in cash flows associated with operating activities and free cash flow to the firm (FCFF). These two metrics provide insight into the company's ability to generate cash and sustain operations and growth.
- Cash generated by operating activities
- This metric shows an overall upward trend from 2020 to 2024, rising from $80,674 million in 2020 to a peak of $118,254 million in 2024. This increase indicates improving operational efficiency and enhanced cash inflows from core business activities over these years. However, in 2025, the cash generated declined slightly to $111,482 million, suggesting a minor reversal or normalization after the peak levels reached the previous year.
- Free cash flow to the firm (FCFF)
- Similarly, FCFF exhibits growth over the period 2020 through 2024, increasing from $75,935 million to $108,807 million. This upward trend reflects a strengthening ability to generate discretionary cash that can be used for investments, debt repayment, or shareholder returns. In 2025, a decline to $98,767 million is observed, indicating that free cash flow also experienced a reduction after several years of growth. This decrease may point to increased expenditures, reduced operational cash inflows, or a combination of both factors.
Overall, both operating cash generation and free cash flow show a consistent growth pattern until 2024, after which a slight contraction occurs in 2025. This pattern suggests the company successfully expanded its cash-generating capacity over the medium term but faced modest challenges in maintaining that growth momentum in the most recent year. The strong cash flow profile over the majority of the period remains a positive indication of financial health and operational performance.
Interest Paid, Net of Tax
Apple Inc., interest paid, net of tax calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-09-26).
2 2025 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 0 × 15.60% = 0
The analysis of the annual financial data reveals the following trends and insights regarding the effective income tax rate and cash paid for interest over the observed periods.
- Effective Income Tax Rate (EITR)
- The effective income tax rate demonstrates variability across the years. Starting at 14.4% in 2020, it decreased slightly to 13.3% in 2021, followed by an increase to 16.2% in 2022. The rate dropped again to 14.7% in 2023, then showed a significant increase to 24.1% in 2024, before declining once more to 15.6% in 2025. This fluctuation indicates changing tax environments or adjustments in taxable income components over the periods assessed.
- Cash Paid for Interest, Net of Tax
- The cash paid for interest after tax shows a decreasing trend from 2020 to 2021, with values moving from 2,570 million USD to 2,330 million USD. In 2022, there was a slight increase to 2,401 million USD, followed by a more considerable rise to 3,244 million USD in 2023. Data for the years 2024 and 2025 are not available, preventing further trend analysis. The increase in interest payments in 2023 could reflect changes in debt levels, interest rates, or financing strategies.
Enterprise Value to FCFF Ratio, Current
Apple Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 4,056,822) |
| Free cash flow to the firm (FCFF) | 98,767) |
| Valuation Ratio | |
| EV/FCFF | 41.07 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Arista Networks Inc. | 37.97 |
| Cisco Systems Inc. | 21.32 |
| Dell Technologies Inc. | 33.90 |
| Super Micro Computer Inc. | 12.10 |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | 36.28 |
| EV/FCFF, Industry | |
| Information Technology | 53.49 |
Based on: 10-K (reporting date: 2025-09-27).
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 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 4,040,273) | 3,411,822) | 2,797,951) | 2,550,236) | 2,520,606) | 1,872,970) | |
| Free cash flow to the firm (FCFF)2 | 98,767) | 108,807) | 102,828) | 113,844) | 95,283) | 75,935) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 40.91 | 31.36 | 27.21 | 22.40 | 26.45 | 24.67 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Arista Networks Inc. | — | 33.39 | 39.01 | 89.98 | 38.47 | 29.00 | |
| Cisco Systems Inc. | 19.06 | 19.55 | 10.98 | 13.55 | 15.50 | 10.47 | |
| Dell Technologies Inc. | 29.51 | 13.99 | 34.88 | 6.45 | 9.28 | 8.76 | |
| Super Micro Computer Inc. | 16.54 | — | 21.06 | — | 25.04 | — | |
| EV/FCFF, Sector | |||||||
| Technology Hardware & Equipment | — | 30.34 | 24.95 | 20.82 | 23.63 | 21.09 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 39.07 | 33.99 | 26.34 | 27.38 | 23.71 | |
Based on: 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), 10-K (reporting date: 2020-09-26).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 4,040,273 ÷ 98,767 = 40.91
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a consistent upward trend over the six-year period, increasing from approximately $1.87 trillion in late 2020 to over $4.04 trillion in late 2025. The growth is steady with notable acceleration between 2023 and 2025, indicating increasing market valuation or expansion of the firm's total value.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm demonstrates an overall increase from around $75.9 billion in 2020 to a peak of approximately $113.8 billion in 2022. However, after reaching this peak, it experiences volatility, declining to about $98.8 billion in 2025. Despite fluctuations, the FCFF remains relatively strong but shows signs of tapering off in recent years.
- EV/FCFF Ratio
- The EV/FCFF ratio exhibits a notable upward trajectory, starting at 24.67 in 2020 and rising sharply to 40.91 by 2025. This indicates that the enterprise value has grown at a faster pace than free cash flow, suggesting increased valuation multiples or market premium on the firm. The steep rise particularly after 2023 may signal growing investor expectations or potential overvaluation risk.
- Summary Insights
- The data reflects a company with strong growth in overall valuation, supported by robust but somewhat volatile free cash flow generation. The increasing EV/FCFF ratio warrants close monitoring, as it may imply elevated market expectations relative to cash flow performance. This trend could affect the firm's financial strategy and investor perception in the medium term.