Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Facebook Inc. (NASDAQ:FB)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Facebook Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 29,146  18,485  22,112  15,934  10,217 
Net noncash charges 12,324  10,579  8,689  6,395  5,133 
Changes in assets and liabilities (2,723) 7,250  (1,527) 1,887  758 
Net cash provided by operating activities 38,747  36,314  29,274  24,216  16,108 
Interest paid, net of tax1 —  —  —  —  — 
Purchases of property and equipment (15,115) (15,102) (13,915) (6,733) (4,491)
Free cash flow to the firm (FCFF) 23,632  21,212  15,359  17,483  11,617 

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Facebook Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Facebook Inc.’s FCFF increased from 2018 to 2019 and from 2019 to 2020.

Interest Paid, Net of Tax

Facebook Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 12.20% 25.50% 12.80% 11.60% 18.40%
Interest Paid, Net of Tax
Interest paid, before tax —  —  —  —  — 
Less: Interest paid, tax2 —  —  —  —  — 
Interest paid, net of tax —  —  —  —  — 

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 See details »

2 2020 Calculation
Interest paid, tax = Interest paid × EITR
= 0 × 12.20% = 0


Enterprise Value to FCFF Ratio, Current

Facebook Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 877,322 
Free cash flow to the firm (FCFF) 23,632 
Valuation Ratio
EV/FCFF 37.12
Benchmarks
EV/FCFF, Competitors1
Activision Blizzard Inc. 31.75
Alphabet Inc. 36.23
Charter Communications Inc. 21.81
Comcast Corp. 25.17
Netflix Inc. 86.96
Walt Disney Co. 74.28
EV/FCFF, Sector
Media & Entertainment 36.45
EV/FCFF, Industry
Communication Services 29.41

Based on: 10-K (filing date: 2021-01-28).

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

Facebook Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 692,679  542,400  434,618  519,216  349,081 
Free cash flow to the firm (FCFF)2 23,632  21,212  15,359  17,483  11,617 
Valuation Ratio
EV/FCFF3 29.31 25.57 28.30 29.70 30.05
Benchmarks
EV/FCFF, Competitors4
Activision Blizzard Inc. 31.06 23.27 17.19 25.21 16.16
Alphabet Inc. 29.53 28.19 30.10 27.21 18.22
Charter Communications Inc. 20.62 24.57 25.41 31.01 35.35
Comcast Corp. 23.35 19.30 19.07 21.87 23.85
Netflix Inc. 95.41
Walt Disney Co. 63.71 143.38 18.15 19.80 20.02
EV/FCFF, Sector
Media & Entertainment 31.06 31.45 28.02 28.03 23.94
EV/FCFF, Industry
Communication Services 25.70 24.67 23.29 24.51 24.84

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 692,679 ÷ 23,632 = 29.31

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Facebook Inc.’s EV/FCFF ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.