.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Comcast Corp., FCFF calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income attributable to Comcast Corporation | |||||
| | Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock | |||||
| | Net noncash charges | |||||
| | Changes in operating assets and liabilities, net of effects of acquisitions and divestitures | |||||
| | Net cash provided by operating activities | |||||
| | Cash payments for interest, net of tax1 | |||||
| | Capital expenditures | |||||
| | Cash paid for intangible assets | |||||
| | 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 Comcast Corp.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Comcast Corp.'s FCFF declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
Interest Paid, Net of Tax
Comcast Corp., interest paid, net of tax calculation
USD $ in millions
| 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 payments for interest, before tax | |||||
| | Less: Cash payments for interest, tax2 | |||||
| | Cash payments for interest, net of tax | |||||
2017 Calculations
2 Cash payments for interest, tax = Cash payments for interest × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
Comcast Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Charter Communications Inc. | |
| Time Warner Inc. | |
| Twenty-First Century Fox Inc. | |
| Walt Disney Co. | |
| EV/FCFF, Sector | |
| Media | |
| 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
Comcast Corp., 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 millions) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Charter Communications Inc. | ||||||
| Time Warner Inc. | ||||||
| Twenty-First Century Fox Inc. | ||||||
| Walt Disney Co. | ||||||
| EV/FCFF, Sector | ||||||
| Media | ||||||
| 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. | Comcast Corp.'s EV/FCFF ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017. |
