Enterprise Value to FCFF (EV/FCFF)
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- Income Statement
- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2006
- Price to Earnings (P/E) since 2006
- Price to Sales (P/S) since 2006
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Free Cash Flow to The Firm (FCFF)
First Solar Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net cash provided by operating activities
- The net cash provided by operating activities exhibited significant fluctuations over the reviewed periods. It initially declined sharply from 174,201 thousand US dollars in 2019 to 37,120 thousand US dollars in 2020, representing a considerable downturn. However, this cash inflow increased markedly in 2021, reaching 237,559 thousand US dollars. The subsequent year, 2022, showed a dramatic surge, with net operating cash inflows soaring to 873,369 thousand US dollars, the highest value observed in the timeframe. In 2023, the figure decreased to 602,260 thousand US dollars, still remaining substantially higher than the earlier years except for 2022.
- Free cash flow to the firm (FCFF)
- The free cash flow to the firm was negative throughout the period, indicating consistent outflows exceeding inflows related to operational cash adjusted for capital expenditures and other investments. While the magnitude of the negative cash flows showed some improvement from 2019 (-476,581 thousand US dollars) through 2022 (-21,072 thousand US dollars), the most recent year, 2023, reflected a significant increase in negative FCFF to -770,535 thousand US dollars. This trend suggests rising capital expenditure or other financing activities impacting free cash flow, despite improved operating cash generation in several years.
Interest Paid, Net of Tax
First Solar Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2 2023 Calculation
Interest paid related to long-term debt arrangements, tax = Interest paid related to long-term debt arrangements × EITR
= × =
- Effective Income Tax Rate (EITR)
-
The effective income tax rate exhibited significant fluctuations over the analyzed period. Starting from a low rate of 4.6% at the end of 2019, it sharply increased to 21% in 2020, suggesting a considerable rise in tax expenses relative to pre-tax income during that year. In 2021, the rate slightly decreased to 18.1%, indicating some reduction in tax burden or changes in taxable income. However, the rate rebounded to 21% in 2022, implying sustained higher tax costs. In 2023, the EITR dropped substantially to 6.8%, signaling a notable decrease in tax expense relative to earnings, which might be due to tax credits, loss carry-forwards, or changes in tax legislation.
- Interest Paid Related to Long-Term Debt Arrangements, Net of Tax (US$ in thousands)
-
The interest paid on long-term debt arrangements, net of tax, demonstrated a generally declining trend from 2019 through 2022, decreasing from $17,935 thousand in 2019 to $9,164 thousand in 2022. This steady reduction suggests either a decrease in overall debt levels, refinancing at lower interest rates, or structural changes in the company's debt profile. However, in 2023, interest paid increased to $13,980 thousand, which may indicate new borrowing, increased interest rates, or changes in debt terms during that year.
Enterprise Value to FCFF Ratio, Current
First Solar Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2023-12-31).
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
First Solar Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| EV/FCFF, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a significant upward trend from 2019 to 2022, increasing from approximately 3.64 billion USD to over 15.6 billion USD. However, in 2023, there was a noticeable decline to nearly 14.0 billion USD, though the value remained substantially higher than in previous years before 2022.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm remained negative throughout the observed period, indicating consistent cash outflows after operational and capital expenditures. The negative cash flow progressively improved from -476.6 million USD in 2019 to -21.1 million USD in 2022, suggesting better operational cash generation or reduced capital spending. Nonetheless, in 2023, the FCFF sharply deteriorated to -770.5 million USD, marking a significant reversal in this trend.
- Overall Trend and Insights
- The data reveals an expansion phase in enterprise value up to 2022, possibly reflecting increased market valuation or operational growth. Despite improving cash flow conditions until 2022, the substantial negative FCFF in 2023 may indicate heightened investment outlays, operational challenges, or other financial pressures affecting liquidity. The reduction in enterprise value from 2022 to 2023 could correspond with the deterioration in free cash flow, suggesting potential market reassessment of the firm’s valuation or financial health. The absence of the EV/FCFF ratio precludes precise valuation efficiency analysis over the period.