Express Scripts Holding Co. (ESRX)

Enterprise Value to FCFF (EV/FCFF)

Difficulty: Intermediate

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.

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
= hidden × hidden % = hidden

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.

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
= hidden ÷ hidden = hidden

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.

	Express Scripts Holding Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality