.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Booking Holdings Inc., FCFF calculation
USD $ in thousands
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income applicable to common stockholders | |||||
| | Net income attributable to noncontrolling interests | |||||
| | Net noncash charges | |||||
| | Changes in assets and liabilities, net of effects of acquisitions | |||||
| | Net cash provided by operating activities | |||||
| | Cash paid during the period for interest, net of tax1 | |||||
| | Additions to property and equipment | |||||
| | Acquisition of land use rights | |||||
| | Free cash flow to the firm (FCFF) |
| 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 increased from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
Booking Holdings Inc., interest paid, net of tax calculation
USD $ in thousands
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| Effective Income Tax Rate (EITR) | ||||||
| | EITR1 | % | % | % | % | % |
| Interest Paid, Net of Tax | ||||||
| | Cash paid during the period for interest, before tax | |||||
| | Less: Cash paid during the period for interest, tax2 | |||||
| | Cash paid during the period for interest, net of tax | |||||
2017 Calculations
2 Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
Booking Holdings Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Delta Air Lines Inc. | |
| Marriott International Inc. | |
| McDonald's Corp. | |
| Starbucks Corp. | |
| EV/FCFF, Sector | |
| Travel & Leisure | |
| EV/FCFF, Industry | |
| Consumer Services | |
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
Booking Holdings Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Delta Air Lines Inc. | ||||||
| Marriott International Inc. | ||||||
| McDonald's Corp. | ||||||
| Starbucks Corp. | ||||||
| EV/FCFF, Sector | ||||||
| Travel & Leisure | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Services | ||||||
2017 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. | Booking Holdings Inc.'s EV/FCFF ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017. |
