Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Celgene Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Celgene Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Celgene Corp. FCFF increased from 2016 to 2017 but then slightly decreased from 2017 to 2018. |
Interest Paid, Net of Tax
Celgene Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2 2018 Calculation
Interest paid, tax = Interest paid × EITR
= 689 × 17.20% = 119
Enterprise Value to FCFF Ratio, Current
Celgene Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 91,115) |
| Free cash flow to the firm (FCFF) | 5,411) |
| Valuation Ratio | |
| EV/FCFF | 16.84 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| AbbVie Inc. | 13.70 |
| Amgen Inc. | 21.08 |
| Bristol-Myers Squibb Co. | 8.59 |
| Danaher Corp. | 35.83 |
| Eli Lilly & Co. | 644.77 |
| Gilead Sciences Inc. | 12.16 |
| Johnson & Johnson | 18.04 |
| Merck & Co. Inc. | 38.48 |
| Pfizer Inc. | 30.42 |
| Regeneron Pharmaceuticals Inc. | 22.51 |
| Thermo Fisher Scientific Inc. | 29.45 |
| Zoetis Inc. | 41.04 |
Based on: 10-K (reporting date: 2018-12-31).
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
Celgene Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 77,219) | 75,373) | 96,260) | 85,544) | 98,142) | |
| Free cash flow to the firm (FCFF)2 | 5,411) | 5,493) | 4,185) | 2,390) | 2,825) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 14.27 | 13.72 | 23.00 | 35.79 | 34.75 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
3 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 77,219 ÷ 5,411 = 14.27
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. | Celgene Corp. EV/FCFF ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018. |