Express Scripts Holding Co., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Net income attributable to Express Scripts	4,517,400)	3,404,400)	2,476,400)	2,007,600)	1,844,600)
Net income attributable to non-controlling interest	14,300)	23,200)	23,100)	27,400)	28,100)
Net noncash charges	266,000)	1,728,000)	1,967,800)	1,915,100)	2,120,800)
Changes in operating assets and liabilities	553,600)	(236,200)	381,000)	598,900)	775,400)
Net cash flows provided by operating activities	5,351,300)	4,919,400)	4,848,300)	4,549,000)	4,768,900)
Cash paid during the year for interest, net of tax¹	547,356)	394,663)	335,211)	351,522)	348,592)
Capital expenditures for property and equipment and computer software	(267,400)	(330,400)	(295,900)	(436,600)	(423,000)
Free cash flow to the firm (FCFF)	5,631,256)	4,983,663)	4,887,611)	4,463,922)	4,694,492)

Based on: 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), 10-K (reporting date: 2013-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Express Scripts Holding Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Express Scripts Holding Co. FCFF increased from 2015 to 2016 and from 2016 to 2017.

Express Scripts Holding Co., interest paid, net of tax calculation

US$ 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	8.10%	22.60%	35.30%	33.60%	36.40%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	595,600)	509,900)	518,100)	529,400)	548,100)
Less: Cash paid during the year for interest, tax²	48,244)	115,237)	182,889)	177,878)	199,508)
Cash paid during the year for interest, net of tax	547,356)	394,663)	335,211)	351,522)	348,592)

Based on: 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), 10-K (reporting date: 2013-12-31).

¹ See details »

² 2017 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 595,600 × 8.10% = 48,244

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Express Scripts Holding Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	68,388,005)
Free cash flow to the firm (FCFF)	5,631,256)
Valuation Ratio
EV/FCFF	12.14
Benchmarks
EV/FCFF, Competitors¹
Abbott Laboratories	33.81
Cigna Group	10.76
CVS Health Corp.	11.28
Danaher Corp.	34.40
Elevance Health Inc.	14.66
Humana Inc.	8.60
Intuitive Surgical Inc.	168.29
Medtronic PLC	24.31
UnitedHealth Group Inc.	17.42

Based on: 10-K (reporting date: 2017-12-31).

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.

Express Scripts Holding Co., 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 (US$ in thousands)
Enterprise value (EV)¹	58,090,748)	54,675,184)	58,275,458)	74,781,795)	71,810,588)
Free cash flow to the firm (FCFF)²	5,631,256)	4,983,663)	4,887,611)	4,463,922)	4,694,492)
Valuation Ratio
EV/FCFF³	10.32	10.97	11.92	16.75	15.30
Benchmarks
EV/FCFF, Competitors⁴
Abbott Laboratories	—	—	—	—	—
Cigna Group	—	—	—	—	—
CVS Health Corp.	—	—	—	—	—
Danaher Corp.	—	—	—	—	—
Elevance Health Inc.	—	—	—	—	—
Humana Inc.	—	—	—	—	—
Intuitive Surgical Inc.	—	—	—	—	—
Medtronic PLC	—	—	—	—	—
UnitedHealth Group Inc.	—	—	—	—	—

Based on: 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), 10-K (reporting date: 2013-12-31).

¹ See details »

² See details »

³ 2017 Calculation
EV/FCFF = EV ÷ FCFF
= 58,090,748 ÷ 5,631,256 = 10.32

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Express Scripts Holding Co. EV/FCFF ratio decreased from 2015 to 2016 and from 2016 to 2017.

Express Scripts Holding Co. (NASDAQ:ESRX)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical