Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Booking Holdings Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial information indicates a consistent upward trend in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the five-year period. Both metrics demonstrate substantial growth from 2021 to 2025.
- Net Cash from Operations
- Net cash provided by operating activities increased significantly from US$2,820 million in 2021 to US$9,409 million in 2025. This represents a cumulative increase of approximately 233% over the period. The largest year-over-year increase occurred between 2021 and 2022, suggesting a potential recovery or significant operational improvement during that time. Growth continued at a robust pace in subsequent years, though the percentage increase moderated slightly.
- Free Cash Flow to the Firm (FCFF)
- FCFF mirrored the trend observed in operating cash flow, rising from US$2,769 million in 2021 to US$9,957 million in 2025. This represents a cumulative increase of approximately 259% over the period. The pattern of growth is similar to that of operating cash flow, with a substantial increase from 2021 to 2022 followed by continued, though slightly decelerating, growth in subsequent years. The difference between net cash from operations and FCFF is minimal across all periods, indicating that capital expenditures are relatively consistent and do not significantly impact the available free cash flow.
The consistent and substantial growth in both operating cash flow and FCFF suggests strong underlying business performance and efficient cash management. The relatively small difference between the two metrics implies a stable capital expenditure policy. Continued monitoring of these trends will be important to assess the sustainability of this performance.
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Interest Paid, Net of Tax
Booking Holdings Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2 2025 Calculation
Interest payments, tax = Interest payments × EITR
= 1,100 × 20.90% = 230
A consistent increase in interest payments, net of tax, is observed over the five-year period. Simultaneously, the effective income tax rate exhibits some fluctuation but remains relatively stable. The interplay between these two figures warrants further examination to understand the company’s financial structure and profitability.
- Interest Payments, Net of Tax
- Interest payments, net of tax, demonstrate a clear upward trajectory, rising from US$253 million in 2021 to US$870 million in 2025. This represents a substantial increase, indicating potentially higher levels of debt financing or changes in interest rates. The largest single-year increase occurred between 2022 and 2023, with a jump of US$362 million. Growth decelerated somewhat in subsequent years, but remained positive.
- Effective Income Tax Rate
- The effective income tax rate experienced moderate variability throughout the period. It increased from 20.48% in 2021 to 22.05% in 2022, then decreased to 21.80% in 2023 and further to 19.30% in 2024. A slight increase to 20.90% is noted in 2025. These fluctuations could be attributed to changes in tax laws, geographic distribution of earnings, or the realization of tax credits.
- Relationship between Interest and Tax Rate
- While interest payments increased consistently, the effective income tax rate did not follow a corresponding trend. The decrease in the effective income tax rate in 2024, coinciding with continued growth in interest expense, suggests that the company may be benefiting from tax efficiencies even as its financing costs rise. However, the increase in interest expense, even after considering the tax benefit, could still impact overall net income.
The significant rise in net interest payments warrants further investigation into the company’s debt structure, including the types of debt, interest rate terms, and any associated refinancing activities. Understanding the drivers behind the fluctuations in the effective income tax rate is also crucial for assessing the company’s long-term financial health.
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Enterprise Value to FCFF Ratio, Current
Booking Holdings Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 147,680) |
| Free cash flow to the firm (FCFF) | 9,957) |
| Valuation Ratio | |
| EV/FCFF | 14.83 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Airbnb Inc. | 16.22 |
| Chipotle Mexican Grill Inc. | 30.84 |
| DoorDash, Inc. | 40.99 |
| McDonald’s Corp. | 30.79 |
| Starbucks Corp. | 43.32 |
| EV/FCFF, Sector | |
| Consumer Services | 24.88 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 50.47 |
Based on: 10-K (reporting date: 2025-12-31).
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
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 136,784) | 165,142) | 134,904) | 91,496) | 100,766) | |
| Free cash flow to the firm (FCFF)2 | 9,957) | 8,663) | 7,657) | 6,482) | 2,769) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 13.74 | 19.06 | 17.62 | 14.11 | 36.39 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Airbnb Inc. | 13.34 | 17.91 | 23.35 | 22.46 | 42.36 | |
| Chipotle Mexican Grill Inc. | 35.20 | 49.96 | 57.71 | 51.53 | 50.61 | |
| DoorDash, Inc. | 39.58 | 46.68 | 31.48 | 844.08 | 65.41 | |
| McDonald’s Corp. | 32.99 | 33.05 | 30.11 | 35.39 | 26.32 | |
| Starbucks Corp. | 37.88 | 32.92 | 32.25 | 42.44 | 28.09 | |
| EV/FCFF, Sector | ||||||
| Consumer Services | 24.28 | 28.11 | 26.85 | 28.89 | 32.14 | |
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | 107.94 | 41.98 | 33.07 | 51.09 | 60.31 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 136,784 ÷ 9,957 = 13.74
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits fluctuations over the observed period. Enterprise Value initially decreased before increasing, while Free Cash Flow to the Firm consistently rose. This interplay resulted in a dynamic EV/FCFF ratio.
- Enterprise Value
- Enterprise Value decreased from US$100,766 million in 2021 to US$91,496 million in 2022, representing a decline. Subsequently, it increased significantly to US$134,904 million in 2023 and further to US$165,142 million in 2024. A decrease is then observed in 2025, with Enterprise Value settling at US$136,784 million.
- Free Cash Flow to the Firm
- Free Cash Flow to the Firm demonstrated a consistent upward trend throughout the period. It increased from US$2,769 million in 2021 to US$6,482 million in 2022, and continued to grow to US$7,657 million in 2023, US$8,663 million in 2024, and US$9,957 million in 2025.
- EV/FCFF Ratio
- The EV/FCFF ratio decreased substantially from 36.39 in 2021 to 14.11 in 2022, coinciding with the increase in Free Cash Flow to the Firm and the decrease in Enterprise Value. The ratio then increased moderately over the next two years, reaching 19.06 in 2024. Finally, the ratio decreased to 13.74 in 2025, driven by the decline in Enterprise Value despite continued growth in Free Cash Flow to the Firm.
The decreasing trend in the EV/FCFF ratio from 2021 to 2022 suggests that the firm’s value was becoming more aligned with its cash flow generation. The subsequent increases in the ratio from 2023 to 2024 indicate that the market was potentially pricing in higher growth expectations or perceived increased risk. The final decrease in 2025 suggests a recalibration of market expectations or a shift in investor sentiment.
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