Microsoft Excel LibreOffice Calc

CSX Corp. (CSX)

Enterprise Value to FCFF (EV/FCFF)

Medium level of difficulty

Free Cash Flow to The Firm (FCFF)

CSX Corp., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 30, 2016 Dec 25, 2015 Dec 26, 2014
Net earnings 3,309  5,471  1,714  1,968  1,927 
Net noncash charges 1,324  (2,034) 1,258  1,596  1,452 
Changes in operating assets and liabilities 8  35  69  (194) (36)
Net cash provided by operating activities 4,641  3,472  3,041  3,370  3,343 
Interest paid, net of amounts capitalized, net of tax1 472  967  379  355  364 
Property additions (1,745) (2,040) (2,398) (2,562) (2,449)
Proceeds from property dispositions 319  97  195  147  62 
Free cash flow to the firm (FCFF) 3,687  2,496  1,217  1,310  1,320 

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10), 10-K (filing date: 2015-02-11).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the CSX Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. CSX Corp.’s FCFF increased from 2016 to 2017 and from 2017 to 2018.

Interest Paid, Net of Tax

CSX Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 30, 2016 Dec 25, 2015 Dec 26, 2014
Effective Income Tax Rate (EITR)
EITR1 23.10% -74.20% 37.50% 37.30% 36.70%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax 614  555  606  566  575 
Less: Interest paid, net of amounts capitalized, tax2 142  (412) 227  211  211 
Interest paid, net of amounts capitalized, net of tax 472  967  379  355  364 

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10), 10-K (filing date: 2015-02-11).

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2 2018 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 614 × 23.10% = 142

Enterprise Value to FCFF Ratio, Current

CSX Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 69,686 
Free cash flow to the firm (FCFF) 3,687 
Valuation Ratio
EV/FCFF 18.90
Benchmarks
EV/FCFF, Competitors1
FedEx Corp. 92.65
Union Pacific Corp. 24.48
United Parcel Service Inc. 17.65
EV/FCFF, Sector
Industrial Transportation 24.22
EV/FCFF, Industry
Industrials 24.49

Based on: 10-K (filing date: 2019-02-06).

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

CSX Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 30, 2016 Dec 25, 2015 Dec 26, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 69,199  58,403  54,757  32,522  44,406 
Free cash flow to the firm (FCFF)2 3,687  2,496  1,217  1,310  1,320 
Valuation Ratio
EV/FCFF3 18.77 23.40 45.00 24.83 33.64
Benchmarks
EV/FCFF, Competitors4
FedEx Corp. — 437.03 46.88 44.24 53.96
Union Pacific Corp. 23.55 25.20 22.39 23.12 33.30
United Parcel Service Inc. 16.23 — 27.31 18.08 26.87
EV/FCFF, Sector
Industrial Transportation 24.47 85.14 29.26 23.12 32.65
EV/FCFF, Industry
Industrials 22.70 24.75 23.33 19.95 19.32

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10), 10-K (filing date: 2015-02-11).

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2 See details »

3 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 69,199 ÷ 3,687 = 18.77

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. CSX Corp.’s EV/FCFF ratio declined from 2016 to 2017 and from 2017 to 2018.