Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Booking Holdings Inc. (NASDAQ:BKNG)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Booking Holdings Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 59  4,865  3,998  2,341  2,135 
Net noncash charges 1,046  541  1,215  743  1,574 
Changes in assets and liabilities, net of effects of acquisitions (1,020) (541) 125  1,578  216 
Net cash provided by operating activities 85  4,865  5,338  4,662  3,925 
Cash paid during the period for interest, net of tax1 25  180  179  130  99 
Additions to property and equipment (286) (368) (442) (288) (220)
Acquisition of land-use rights —  —  —  —  (48)
Free cash flow to the firm (FCFF) (176) 4,677  5,075  4,504  3,755 

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Booking Holdings Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Booking Holdings Inc.’s FCFF decreased from 2018 to 2019 and from 2019 to 2020.

Interest Paid, Net of Tax

Booking Holdings Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 91.01% 18.63% 18.30% 16.18% 21.31%
Interest Paid, Net of Tax
Cash paid during the period for interest, before tax 278  221  219  155  126 
Less: Cash paid during the period for interest, tax2 253  41  40  25  27 
Cash paid during the period for interest, net of tax 25  180  179  130  99 

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

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2 2020 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= 278 × 91.01% = 253

Enterprise Value to FCFF Ratio, Current

Booking Holdings Inc., current EV/FCFF calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 102,409 
Free cash flow to the firm (FCFF) (176)
Valuation Ratio
EV/FCFF —
Benchmarks
EV/FCFF, Competitors1
McDonald’s Corp. 37.75
Starbucks Corp. 350.78
EV/FCFF, Sector
Travel & Leisure 78.68
EV/FCFF, Industry
Consumer Services 40.83

Based on: 10-K (filing date: 2021-02-24).

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

Booking Holdings Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 101,041  70,228  88,159  94,109  83,085 
Free cash flow to the firm (FCFF)2 (176) 4,677  5,075  4,504  3,755 
Valuation Ratio
EV/FCFF3 — 15.02 17.37 20.89 22.12
Benchmarks
EV/FCFF, Competitors4
McDonald’s Corp. 34.80 29.06 34.31 35.93 26.95
Starbucks Corp. 281.97 30.98 8.45 30.24 25.91
EV/FCFF, Sector
Travel & Leisure 70.63 25.00 17.08 29.17 25.12
EV/FCFF, Industry
Consumer Services 35.63 31.15 25.61 27.63 25.23

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27).

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3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 101,041 ÷ -176 = —

4 Click competitor name to see calculations.