Enterprise Value to FCFF (EV/FCFF)
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CrowdStrike Holdings Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2020
- Return on Assets (ROA) since 2020
- Debt to Equity since 2020
- Price to Earnings (P/E) since 2020
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Free Cash Flow to The Firm (FCFF)
CrowdStrike Holdings Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
- Operating Cash Flow Trends
-
Over the six-year period, net cash provided by operating activities exhibited a consistent and significant upward trend. Starting from approximately $99.9 million in the earliest year, this figure increased substantially each year, reaching over $1.38 billion by the final year. This steady growth indicates improving operational efficiency and stronger cash generation capabilities over time.
- Free Cash Flow to the Firm (FCFF) Trends
-
The free cash flow to the firm also showed a pronounced upward trajectory during the same period. Beginning at roughly $12.5 million, it experienced a sharp increase year-over-year, growing to more than $1 billion by the last reported year. This positive trend highlights enhanced ability to generate cash after accounting for capital expenditures, reflecting potential for reinvestment, debt servicing, and shareholder returns.
- Comparison and Relationship between Operating Cash Flow and FCFF
-
The data reveals that free cash flow to the firm consistently represents a growing proportion of operating cash flow. This pattern suggests that capital expenditure requirements may be stable or proportionally decreasing relative to operating cash inflows, which is a favorable indicator of financial health and operational scalability.
- Overall Financial Health Indicators
-
The consistent increases in both operating cash flow and free cash flow to the firm indicate strong liquidity generation and improved cash management. These trends are positive signs of sustainable growth, potential for increased investment capacity, and enhanced ability to meet financial obligations and pursue strategic initiatives.
Interest Paid, Net of Tax
CrowdStrike Holdings Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
2 2025 Calculation
Interest paid, tax = Interest paid × EITR
= × =
- Effective Income Tax Rate (EITR) Trend
- The effective income tax rate remained stable at 21% from January 31, 2020, through January 31, 2023. A notable increase occurred in the fiscal year ending January 31, 2024, where the rate rose to 26.24%. However, the rate reverted to 21% in the fiscal year ending January 31, 2025. This pattern indicates a temporary elevation in tax burden during 2024, which normalized the following year.
- Interest Paid, Net of Tax Trend
- Interest paid, net of tax, demonstrated significant growth over the observed period. From a minimal amount of $6,000 in 2020, the figure rose slightly to $14,000 in 2021. Subsequently, a sharp increase to $217,000 was recorded in 2022, followed by a dramatic surge to $17,815,000 in 2023. In the subsequent years, this amount remained elevated, reaching $16,596,000 in 2024 and rising again to $17,775,000 in 2025. This substantial rise suggests increased borrowing or higher interest rates impacting financial costs during these years.
- Overall Financial Implications
- The stability in the effective income tax rate for most years suggests consistent tax planning or regulatory conditions, interrupted only in 2024 by a transient increase. The sharp escalation in net interest paid starting in 2022 highlights a marked shift in the company's financing structure or market conditions, potentially affecting profitability and cash flow. The elevated interest expenses in recent years likely represent a strategic decision to leverage or finance operations through debt, with possible implications for future interest expense management.
Enterprise Value to FCFF Ratio, Current
CrowdStrike Holdings Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| EV/FCFF, Sector | |
| Software & Services | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2025-01-31).
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
CrowdStrike Holdings Inc., historical EV/FCFF calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Free cash flow to the firm (FCFF)2 | |||||||
| Valuation Ratio | |||||||
| EV/FCFF3 | |||||||
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Software & Services | |||||||
| EV/FCFF, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited substantial volatility over the observed period. Starting at approximately $10.06 billion in early 2020, it increased sharply to around $41.40 billion in early 2021 and slightly rose to $42.52 billion in early 2022. Subsequently, there was a notable decline to approximately $26.76 billion in early 2023. The value then surged again to a peak of about $77.04 billion in early 2024, before slightly decreasing to approximately $73.02 billion in early 2025.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm showed a consistent and strong upward trend throughout the period. Beginning at about $12.46 million in early 2020, it increased significantly each year, reaching $292.74 million in early 2021, $441.31 million in early 2022, $692.39 million in early 2023, $945.69 million in early 2024, and finally $1.09 billion in early 2025. This steady growth indicates improving operational cash generation ability.
- EV/FCFF Ratio
- The EV to FCFF ratio demonstrated a marked downward trend from an extremely high valuation multiple of 807.14 in early 2020 to 141.44 in early 2021 and further to 96.35 in early 2022. This decline suggests that the company’s enterprise value was becoming more justified relative to free cash flow. In early 2023, the ratio dropped markedly to 38.65, indicating a more attractive valuation relative to cash flow. However, this trend reversed partially, with the ratio rising to 81.46 in early 2024 and declining slightly again to 67.26 in early 2025. The fluctuations in the ratio mainly reflect the volatility in enterprise value, while the continued growth in FCFF provides a stabilizing effect.
- Summary and Insights
- Overall, the financial data reflect volatile market valuation as seen in the enterprise value swings, contrasting with steady and substantial improvements in free cash flow. The EV/FCFF multiple’s gradual decline over the five-year period signifies improving valuation attractiveness, though recent fluctuations suggest market uncertainties or changing investor expectations. The consistent growth in free cash flow underpins the company’s strengthening operational financial health, potentially supporting future sustainable value creation despite valuation variability.