Facebook Inc., FCFF calculation

US$ in millions

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).

¹ See details »

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.

Facebook Inc., interest paid, net of tax calculation

US$ in millions

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

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

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.

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

	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.

Facebook Inc. (NASDAQ:FB)

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