.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Express Scripts Holding Co., FCFF calculation
USD $ 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 | |||||
| | Net income attributable to non-controlling interest | |||||
| | Net noncash charges | |||||
| | Changes in operating assets and liabilities | |||||
| | Net cash flows provided by operating activities | |||||
| | Cash paid during the year for interest, net of tax1 | |||||
| | Capital expenditures for property and equipment and computer software | |||||
| | 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 Express Scripts Holding Co.'s 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.'s FCFF increased from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
Express Scripts Holding Co., interest paid, net of tax calculation
USD $ 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 | % | % | % | % | % |
| Interest Paid, Net of Tax | ||||||
| | Cash paid during the year for interest, before tax | |||||
| | Less: Cash paid during the year for interest, tax2 | |||||
| | Cash paid during the year for interest, net of tax | |||||
2017 Calculations
2 Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
Express Scripts Holding Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Medtronic PLC | |
| Stryker Corp. | |
| Thermo Fisher Scientific Inc. | |
| UnitedHealth Group Inc. | |
| EV/FCFF, Sector | |
| Health Care Equipment & Services | |
| EV/FCFF, Industry | |
| Health Care | |
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
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 (USD $ in thousands) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Medtronic PLC | ||||||
| Stryker Corp. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/FCFF, Industry | ||||||
| Health Care | ||||||
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. | Express Scripts Holding Co.'s EV/FCFF ratio declined from 2015 to 2016 and from 2016 to 2017. |
