Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Intuit Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
The financial performance reflects a consistent long-term growth trajectory in cash generation, characterized by a strong correlation between operating cash flows and Free Cash Flow to the Firm (FCFF). Between 2021 and 2026, both metrics exhibit an overall upward trend, despite a marginal contraction observed in 2024.
- Operating Cash Flow Trends
- Net cash provided by operating activities grew from 3,250 million in 2021 to a projected 8,838 million by 2026. The most significant acceleration is anticipated between 2025 and 2026, where a growth rate of approximately 42.4% is expected.
- FCFF Expansion and Efficiency
- FCFF increased from 3,149 million in 2021 to a projected 8,841 million in 2026. The narrow variance between operating cash flow and FCFF suggests a lean capital expenditure structure, allowing the majority of operational cash to be converted into free cash flow available to the firm.
- Analysis of 2024 Contraction
- A slight decline is noted in 2024, with FCFF decreasing from 5,003 million to 4,801 million. This represents a temporary deviation from the growth trend before a sharp recovery in 2025, where FCFF is projected to rise to 6,310 million.
- Long-term Cash Flow Projection
- The projected values for 2025 and 2026 indicate an aggressive scaling of cash generation. By 2026, FCFF is expected to be approximately 2.8 times the level recorded in 2021, signaling strong anticipated operational efficiency and liquidity growth.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Interest Paid, Net of Tax
Intuit Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
2 2026 Calculation
Interest paid, tax = Interest paid × EITR
= 295 × 24.10% = 71
A significant upward trajectory in interest paid, net of tax, is observed between 2021 and 2026, characterized by an initial period of rapid expansion followed by a phase of relative stabilization. While the net cost of interest increased by approximately 833% over the six-year period, the progression was marked by notable volatility between 2023 and 2025.
- Interest Expenditure Trends
- The net interest paid experienced an aggressive increase from 24 million USD in 2021 to 217 million USD by 2023. Following this peak, a temporary contraction occurred in 2024, with the figure dropping to 167 million USD. A subsequent recovery led to a peak of 227 million USD in 2025, before stabilizing at 224 million USD in 2026. This pattern suggests a substantial increase in debt obligations or a shift in the interest rate environment starting around 2022.
- Effective Income Tax Rate (EITR) Fluctuations
- The EITR remained relatively stable between 18.73% and 20.24% from 2021 to 2023. A distinct dip to 16.50% was recorded in 2024, coinciding with the lowest net interest payment since 2022. From 2025 onward, the rate trended upward, reaching a period high of 24.10% in 2026.
- Interplay Between Tax Rates and Net Interest
- The net interest paid is sensitive to the EITR, as higher tax rates reduce the net cost of interest. In 2026, the highest EITR of 24.10% occurred alongside a slight decrease in net interest paid to 224 million USD, suggesting that the tax shield effect may have mitigated an increase in gross interest expenses. Conversely, the reduction in net interest paid in 2024 occurred despite a lower EITR of 16.50%, indicating that the decrease was driven by a reduction in gross interest payments rather than tax effects.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Enterprise Value to FCFF Ratio, Current
Intuit Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 72,096) |
| Free cash flow to the firm (FCFF) | 8,841) |
| Valuation Ratio | |
| EV/FCFF | 8.15 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Accenture PLC | 9.38 |
| Adobe Inc. | 8.99 |
| AppLovin Corp. | 24.96 |
| Cadence Design Systems Inc. | 53.10 |
| Datadog Inc. | 101.61 |
| International Business Machines Corp. | 19.26 |
| Microsoft Corp. | 55.86 |
| Oracle Corp. | — |
| Palantir Technologies Inc. | 210.52 |
| Palo Alto Networks Inc. | 76.93 |
| Salesforce Inc. | 13.05 |
| ServiceNow Inc. | 28.48 |
| Synopsys Inc. | 53.34 |
| Workday Inc. | 15.12 |
| EV/FCFF, Sector | |
| Software & Services | 42.01 |
| EV/FCFF, Industry | |
| Information Technology | 59.89 |
Based on: 10-K (reporting date: 2026-07-31).
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
Intuit Inc., historical EV/FCFF calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 84,365) | 187,852) | 176,614) | 156,489) | 122,035) | 153,168) | |
| Free cash flow to the firm (FCFF)2 | 8,841) | 6,310) | 4,801) | 5,003) | 3,714) | 3,149) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 9.54 | 29.77 | 36.79 | 31.28 | 32.85 | 48.64 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Accenture PLC | — | 13.12 | 25.76 | 20.26 | 16.99 | 24.76 | |
| Adobe Inc. | — | 12.38 | 21.98 | 37.75 | 20.82 | 33.61 | |
| AppLovin Corp. | — | 33.81 | 49.47 | 20.62 | — | — | |
| Cadence Design Systems Inc. | — | 48.06 | 61.26 | 63.83 | 44.54 | 35.05 | |
| Datadog Inc. | — | 43.12 | 52.45 | 68.76 | 66.00 | 198.40 | |
| International Business Machines Corp. | — | 19.86 | 20.11 | 15.27 | 16.47 | 13.10 | |
| Microsoft Corp. | 42.96 | 52.24 | 41.70 | 39.61 | 30.26 | 36.19 | |
| Oracle Corp. | — | 263.29 | 31.24 | 35.83 | 31.60 | 16.36 | |
| Palantir Technologies Inc. | — | 148.08 | 251.61 | 69.13 | 82.97 | 66.45 | |
| Palo Alto Networks Inc. | 67.00 | 35.88 | 34.69 | 28.15 | 29.30 | 32.74 | |
| Salesforce Inc. | 12.55 | 21.83 | 29.95 | 28.41 | 35.97 | 44.91 | |
| ServiceNow Inc. | — | 25.78 | 60.21 | 56.56 | 40.87 | 60.12 | |
| Synopsys Inc. | — | 60.75 | 56.95 | 55.87 | 30.82 | 38.59 | |
| Workday Inc. | 12.75 | 26.14 | 32.57 | 33.40 | 45.74 | 57.52 | |
| EV/FCFF, Sector | |||||||
| Software & Services | — | 43.20 | 37.97 | 34.88 | 28.89 | 32.08 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 43.70 | 39.04 | 33.99 | 26.47 | 27.37 | |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
3 2026 Calculation
EV/FCFF = EV ÷ FCFF
= 84,365 ÷ 8,841 = 9.54
4 Click competitor name to see calculations.
The valuation metrics indicate a significant shift in the relationship between the enterprise value and the company's ability to generate free cash flow to the firm over the analyzed period. While cash flow generation has exhibited a strong upward trajectory, the valuation multiple has experienced a marked contraction.
- Enterprise Value (EV) Trends
- The enterprise value demonstrated volatility between 2021 and 2025, reaching a peak of 187,852 million US dollars in 2025 after an initial decline in 2022. A substantial reduction is observed in 2026, where the value fell to 84,365 million US dollars, representing a significant departure from the preceding growth trend.
- Free Cash Flow to the Firm (FCFF) Performance
- FCFF showed a consistent expansion, rising from 3,149 million US dollars in 2021 to 8,841 million US dollars by 2026. Despite a slight contraction in 2024, the overall trend reflects a strengthened capacity for cash generation, with the 2026 figure representing nearly a three-fold increase over the 2021 level.
- EV/FCFF Ratio Interpretation
- The EV/FCFF ratio reveals a general compression of the valuation multiple. From a high of 48.64 in 2021, the ratio decreased to 29.77 by 2025. A sharp decline occurred in 2026, with the ratio dropping to 9.54. This contraction is the result of the convergence of a declining enterprise value and peaking free cash flow, indicating a substantial decrease in the premium assigned to each unit of cash flow generated.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?