Enterprise Value to FCFF (EV/FCFF)
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Booking Holdings Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Free Cash Flow to The Firm (FCFF)
Booking Holdings Inc., FCFF calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals a significant improvement in the company's cash flow performance over the five-year period ending December 31, 2024.
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited a sharp increase from 85 million USD in 2020 to 2,820 million USD in 2021. This upward trend continued strongly, reaching 6,554 million USD in 2022 and further increasing to 7,344 million USD in 2023. By 2024, the figure rose to 8,323 million USD, indicating robust operational cash generation and a consistent year-over-year growth pattern.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm experienced a negative value of 172 million USD in 2020, suggesting cash outflows exceeding operational inflows initially. However, a remarkable recovery is seen in 2021 when FCFF surged to 2,769 million USD. Following this, steady growth persisted with FCFF reaching 6,482 million USD in 2022, continuing upward to 7,658 million USD in 2023, and peaking at 8,663 million USD in 2024. The progression underscores improved cash availability post capital expenditures, reflecting increased financial flexibility and strong cash generation capacity.
Overall, the data indicates a transition from constrained liquidity conditions in 2020 to substantial and sustained cash flow generation in subsequent years. The company demonstrates enhanced operational efficiency and strengthened free cash flow metrics, which likely support reinvestment, debt reduction, or shareholder value initiatives going forward.
Interest Paid, Net of Tax
Booking Holdings Inc., interest paid, net of tax calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
2 2024 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate demonstrated a significant decline from 89.59% in 2020 to 20.48% in 2021. Following this sharp decrease, the rate stabilized with minor fluctuations, recording 22.05% in 2022, 21.75% in 2023, and 19.34% in 2024. This pattern suggests an initial adjustment in tax strategy or accounting policies around 2021, after which the rate maintained a relatively consistent level near 20%.
- Cash Paid During the Period for Interest, Net of Tax (US$ in millions)
- Interest payments net of tax exhibited an overall increasing trend over the analyzed periods. Starting at US$29 million in 2020, the figure soared to US$253 million in 2021, followed by a further increase to US$296 million in 2022. The upward trajectory continued more sharply, reaching US$659 million in 2023 and US$769 million in 2024. This consistent and substantial rise may reflect greater debt levels or higher interest rates impacting the company’s financing costs over this timeframe.
Enterprise Value to FCFF Ratio, Current
Booking Holdings Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Airbnb Inc. | |
| Chipotle Mexican Grill Inc. | |
| McDonald’s Corp. | |
| Starbucks Corp. | |
| EV/FCFF, Sector | |
| Consumer Services | |
| EV/FCFF, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| EV/FCFF, Sector | ||||||
| Consumer Services | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value displayed a declining trend from 2020 through 2022, moving from 101,041 million USD to 91,495 million USD. This was followed by a notable increase in the subsequent years, rising to 134,904 million USD in 2023 and further increasing to 165,141 million USD by the end of 2024.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm showed significant improvement over the observed period. Initially negative at -172 million USD in 2020, it turned positive and increased substantially to 2,769 million USD in 2021. This upward trajectory continued with considerable growth to 6,482 million USD in 2022 and progressively higher values in the following years, reaching 7,658 million USD in 2023 and 8,663 million USD in 2024.
- EV/FCFF Ratio
- The EV to FCFF ratio, which was not reported for 2020 (due to negative FCFF), peaked at a high 36.39 in 2021, indicating a relatively high enterprise value compared to the free cash flow. Following this peak, the ratio declined sharply to 14.11 in 2022, suggesting improved valuation relative to cash flow. In 2023 and 2024, the ratio experienced moderate increases to 17.62 and 19.06, respectively, implying a slight decrease in valuation efficiency compared to the highest cash flow years.