Enterprise Value to FCFF (EV/FCFF)
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- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2012
- Price to Operating Profit (P/OP) since 2012
- Price to Book Value (P/BV) since 2012
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Free Cash Flow to The Firm (FCFF)
Meta Platforms Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1, 2 See details »
The financial information reveals trends in net cash provided by operating activities and free cash flow to the firm (FCFF) over a five-year period. Net cash from operations demonstrates an overall positive trajectory, while FCFF exhibits more fluctuation.
- Net Cash from Operating Activities
- Net cash provided by operating activities decreased from US$57,683 million in 2021 to US$50,475 million in 2022, representing a decline. However, a substantial increase is then observed, rising to US$71,113 million in 2023. This upward trend continues through 2024, reaching US$91,328 million, and further expands to US$115,800 million in 2025. This indicates strengthening operational cash generation capabilities.
- Free Cash Flow to the Firm (FCFF)
- FCFF experienced a significant decrease from US$38,956 million in 2021 to US$19,066 million in 2022. A recovery is then noted in 2023, with FCFF increasing to US$44,082 million. Further growth is apparent in 2024, reaching US$54,658 million. However, FCFF declines again in 2025, settling at US$46,363 million. While generally positive, the FCFF trend is less consistent than that of operating cash flow, suggesting potential variations in capital expenditure or other non-operating cash flows.
The divergence between the trends in operating cash flow and FCFF suggests that changes in investments, such as capital expenditures, or other uses of cash are impacting the amount of free cash flow available to the firm. Despite the fluctuations in FCFF, the overall increase in operating cash flow is a positive indicator.
Interest Paid, Net of Tax
Meta Platforms Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2 2025 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= × =
3 2025 Calculation
Interest expense capitalized, tax = Interest expense capitalized × EITR
= × =
The information presents trends in the effective income tax rate, cash paid for interest (net of tax and capitalization), and interest expense capitalized (net of tax) over a five-year period. A clear pattern emerges beginning in 2023, with increasing values for both interest-related items. The effective income tax rate exhibits more volatility.
- Cash Paid for Interest, Net of Tax
- No values are reported for 2021 and 2022. Beginning in 2023, this figure is $369 million and demonstrates a consistent upward trend, reaching $490 million by 2025. This represents a compound annual growth rate of approximately 12.3% over the observed three-year period. The increasing trend suggests a growing interest burden or increased debt financing.
- Interest Expense Capitalized, Net of Tax
- Similar to cash paid for interest, values are unavailable for 2021 and 2022. In 2023, the amount is $233 million, increasing to $377 million by 2025. This also shows a consistent upward trend, with a compound annual growth rate of approximately 12.8% over the observed three-year period. Capitalized interest suggests investments in projects that are taking time to become operational, and the increasing trend indicates potentially larger or more numerous projects under development.
- Effective Income Tax Rate
- The effective income tax rate fluctuates considerably. It begins at 16.70% in 2021, rises to 19.50% in 2022, then decreases to 17.60% in 2023. A significant drop is observed in 2024, falling to 11.80%, followed by a substantial increase to 29.60% in 2025. This volatility could be attributable to changes in tax laws, geographic distribution of earnings, or the recognition of tax benefits or liabilities. The increase in 2025 may offset some of the impact of rising interest expenses on net income.
The concurrent increases in both cash paid for interest and interest expense capitalized suggest a growing reliance on debt financing and/or significant ongoing investment in long-term projects. The fluctuating effective income tax rate introduces complexity when assessing the overall impact of these interest expenses on profitability.
Enterprise Value to FCFF Ratio, Current
Meta Platforms Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Netflix Inc. | |
| Trade Desk Inc. | |
| Walt Disney Co. | |
| EV/FCFF, Sector | |
| Media & Entertainment | |
| EV/FCFF, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2025-12-31).
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.
Enterprise Value to FCFF Ratio, Historical
Meta Platforms Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
| EV/FCFF, Sector | ||||||
| Media & Entertainment | ||||||
| EV/FCFF, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits a clear upward trend over the observed period. Initially, the ratio demonstrates a substantial increase from 2021 to 2025, indicating a growing disparity between the company’s enterprise value and the free cash flow it generates.
- Enterprise Value (EV)
- Enterprise Value experienced a decrease from US$599,752 million in 2021 to US$459,285 million in 2022. However, a significant recovery and subsequent increase occurred, reaching US$1,164,614 million in 2023, US$1,692,344 million in 2024, and US$1,845,932 million in 2025. This suggests a substantial shift in market valuation over the period.
- Free Cash Flow to the Firm (FCFF)
- Free Cash Flow to the Firm decreased considerably from US$38,956 million in 2021 to US$19,066 million in 2022. FCFF then showed improvement, rising to US$44,082 million in 2023 and US$54,658 million in 2024. A slight decrease is observed in 2025, with FCFF reported at US$46,363 million.
- EV/FCFF Ratio Trend
- The EV/FCFF ratio increased from 15.40 in 2021 to 24.09 in 2022, reflecting the decline in FCFF and the decrease in EV. The ratio continued to climb, reaching 26.42 in 2023 and 30.96 in 2024, driven by the rapid growth in Enterprise Value. The most substantial increase occurred between 2024 and 2025, with the ratio reaching 39.82. This indicates that investors are paying a progressively larger premium for each dollar of free cash flow generated by the firm.
The increasing EV/FCFF ratio suggests that the market’s expectations regarding future growth, or perceived risk, have increased relative to the firm’s current free cash flow generation. Alternatively, it could indicate that the enterprise value is becoming increasingly detached from the firm’s underlying cash flow producing ability. Further investigation into the drivers of Enterprise Value and Free Cash Flow is warranted to understand this trend fully.