Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Intel Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1, 2 See details »
The financial data reveals a consistent downward trend in key cash flow metrics over the five-year period from December 26, 2020, to December 28, 2024.
- Net cash provided by operating activities
- This metric shows a steady decline year-over-year. Starting at $35,384 million in 2020, it decreased to $29,991 million in 2021, then sharply fell to $15,433 million in 2022. The decline continued in 2023 and 2024, with values of $11,471 million and $8,288 million respectively. This downward movement suggests a weakening ability to generate cash from core operating activities over time.
- Free cash flow to the firm (FCFF)
- The FCFF figures reveal a more pronounced negative trend. In 2020, the company reported a positive free cash flow of $21,901 million, which then nearly halved to $12,121 million in 2021. From 2022 onwards, the company experienced negative free cash flow, with values of -$8,428 million in 2022, decreasing further to -$12,610 million in 2023, and reaching -$13,691 million in 2024. This shift into negative territory indicates increasing capital expenditures, investments, or other cash outflows exceeding inflows, thereby exerting pressure on financial flexibility.
Overall, the trends indicate a significant erosion of cash generation capabilities from operating activities, compounded by rising negative free cash flow, pointing to rising cash outlays or diminished operational efficiency. These patterns warrant closer examination to understand the underlying causes and implications for the company's liquidity and investment strategy.
Interest Paid, Net of Tax
Intel Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
2 2024 Calculation
Cash paid during the year for interest, net of capitalized interest, tax = Cash paid during the year for interest, net of capitalized interest × EITR
= 987 × 21.00% = 207
3 2024 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 1,500 × 21.00% = 315
- Effective Income Tax Rate (EITR)
- The effective income tax rate shows noticeable variability over the five-year period. Starting at 16.7% in 2020, it declined significantly to 8.5% in 2021, followed by an increase to 21% which remained stable through 2022 to 2024. This pattern indicates an initial tax rate reduction followed by a consistent higher rate level in the subsequent years.
- Cash Paid During the Year for Interest, Net of Capitalized Interest and Net of Tax
- The cash paid for interest exhibits some fluctuations over the period. It began at $495 million in 2020, remained relatively stable at $499 million in 2021, then decreased notably to $363 million in 2022. Following this, the amount increased to $484 million in 2023 and rose sharply to $780 million in 2024. This suggests periods of varying interest expense outflows with a significant increase in the most recent year.
- Interest Capitalized, Net of Tax
- Interest capitalized shows a consistent upward trend over the five years. Starting at $282 million in 2020, it increased to $364 million in 2021, then surged to $620 million in 2022. The upward momentum continued with a sharp rise to $1,185 million in 2023, maintaining the same level in 2024. This substantial growth indicates increased capitalization of interest costs, possibly related to expanded investment or financing activities.
Enterprise Value to FCFF Ratio, Current
Intel Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 125,662) |
| Free cash flow to the firm (FCFF) | (13,691) |
| Valuation Ratio | |
| EV/FCFF | — |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | 83.02 |
| Analog Devices Inc. | 35.19 |
| Applied Materials Inc. | 17.32 |
| Broadcom Inc. | 57.57 |
| KLA Corp. | 35.02 |
| Lam Research Corp. | 27.48 |
| Micron Technology Inc. | 245.58 |
| Monolithic Power Systems Inc. | 49.79 |
| NVIDIA Corp. | 56.91 |
| Qualcomm Inc. | 14.07 |
| Texas Instruments Inc. | 96.32 |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | 85.59 |
| EV/FCFF, Industry | |
| Information Technology | 47.33 |
Based on: 10-K (reporting date: 2024-12-28).
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
Intel Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 117,843) | 213,159) | 132,074) | 205,348) | 242,716) | |
| Free cash flow to the firm (FCFF)2 | (13,691) | (12,610) | (8,428) | 12,121) | 21,901) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | — | — | — | 16.94 | 11.08 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 72.30 | 225.41 | 38.82 | 43.41 | 126.98 | |
| Analog Devices Inc. | 33.82 | 25.61 | 23.12 | 39.16 | 27.12 | |
| Applied Materials Inc. | 17.55 | 17.40 | 19.06 | 26.22 | 22.52 | |
| Broadcom Inc. | 51.00 | 28.53 | 14.74 | 19.47 | 16.54 | |
| KLA Corp. | 29.56 | 19.99 | 19.05 | 26.29 | 18.70 | |
| Lam Research Corp. | 24.56 | 17.99 | 24.08 | 24.40 | 26.78 | |
| Micron Technology Inc. | 203.18 | — | 16.58 | 28.79 | 188.88 | |
| Monolithic Power Systems Inc. | 41.80 | 58.38 | 117.73 | 91.92 | 80.84 | |
| NVIDIA Corp. | 61.32 | 142.92 | 78.06 | 69.50 | 41.66 | |
| Qualcomm Inc. | 16.26 | 11.61 | 18.18 | 17.47 | 30.89 | |
| Texas Instruments Inc. | 89.36 | 89.85 | 27.02 | 24.20 | 27.67 | |
| EV/FCFF, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 56.69 | 60.26 | 35.28 | 26.38 | 22.16 | |
| EV/FCFF, Industry | ||||||
| Information Technology | 40.33 | 34.40 | 26.74 | 27.56 | 23.97 | |
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 117,843 ÷ -13,691 = —
4 Click competitor name to see calculations.
The financial data reveals significant fluctuations in both enterprise value and free cash flow to the firm over the observed periods, indicating varying business valuation and cash generation capacity.
- Enterprise Value (EV)
- The enterprise value exhibits a declining trend from 2020 through 2022, dropping substantially from approximately $242.7 billion to $132.1 billion. However, it rebounds notably in 2023 to $213.2 billion before decreasing again in 2024 to about $117.8 billion. This volatility suggests changes in market perception, debt levels, or equity valuation impacting the overall value of the firm.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm shows a clear downward trajectory over the years. Starting at $21.9 billion in 2020, FCFF decreases sharply to $12.1 billion in 2021. Subsequently, the FCFF turns negative from 2022 onwards, worsening from -$8.4 billion in 2022 to -$12.6 billion in 2023, and further to -$13.7 billion in 2024. This persistent negative cash flow indicates increased capital expenditures, lower operating cash inflows, or other factors that reduce free cash flows available to all capital providers.
- EV/FCFF Ratio
- The EV/FCFF multiple rises from 11.08 in 2020 to 16.94 in 2021 but is not provided for subsequent years, likely due to negative FCFF values which render the ratio meaningless. The increase in the ratio during the available periods suggests heightened valuation relative to cash flow, potentially signaling overvaluation or market optimism during that timeframe.
Overall, the financial figures illustrate a period of considerable financial stress, marked by declining enterprise value after a rebound, and deteriorating free cash flow resulting in negative figures for multiple successive years. These patterns are indicative of operational challenges or increased investments that have yet to translate into positive cash returns. The absence of meaningful EV/FCFF ratios in later years compounds the difficulty of valuing the firm based on cash flow fundamentals during this period.