Enterprise Value to FCFF (EV/FCFF)
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- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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Free Cash Flow to The Firm (FCFF)
Intuit Inc., FCFF calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
The financial data reveals a positive trend in the company's cash flow generation from 2019 to 2024. Both the net cash provided by operating activities and free cash flow to the firm (FCFF) show consistent growth over the analyzed periods, indicating an improving cash position and efficient operating performance.
- Net Cash Provided by Operating Activities
- This metric exhibits a steady increase from US$2,324 million in 2019 to a peak of US$5,046 million in 2023. Although there is a slight decline to US$4,884 million in 2024, the overall trend indicates enhanced operational cash generation capabilities.
- Free Cash Flow to the Firm (FCFF)
- The FCFF follows a similar upward trajectory, rising from US$2,183 million in 2019 to US$5,003 million in 2023, reflecting strong cash generation after capital expenditures. The minor decrease to US$4,801 million in 2024 mirrors the slight downturn observed in operating cash flows but remains significantly higher than earlier years.
Overall, the data points to robust operational cash generation and stable capital management, which likely support the firm's financial flexibility and capacity for growth initiatives. The slight reductions in 2024 warrant monitoring to determine if they signal a short-term variability or a developing trend.
Interest Paid, Net of Tax
Intuit Inc., interest paid, net of tax calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited fluctuations across the reported periods. It started at 17.22% in 2019, showed a slight decline to 16.92% in 2020, then increased to 19.33% in 2021. Subsequently, it decreased marginally to 18.73% in 2022, rose again to a peak of 20.24% in 2023, and finally declined noticeably to 16.54% in 2024. This variability suggests periodic changes in tax strategy, tax regulations, or income composition affecting the tax expense.
- Interest Paid, Net of Tax (US$ in millions)
- The interest paid, net of tax, shows a marked upward trend from 2019 to 2023. Starting from a low base of $14 million in 2019, interest payments decreased to $12 million in 2020, then surged to $24 million in 2021, continued increasing sharply to $54 million in 2022, and peaked at $217 million in 2023. In 2024, this amount decreased slightly to $167 million but remained substantially higher than the earlier years. This rise indicates an increased debt burden or higher interest rates impacting financing costs, particularly from 2021 onwards.
Enterprise Value to FCFF Ratio, Current
Intuit Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| EV/FCFF, Sector | |
| Software & Services | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-07-31).
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, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Software & Services | |||||||
| EV/FCFF, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibits a generally upward trajectory over the analyzed periods, increasing from $72,691 million in 2019 to $176,614 million in 2024. Between 2019 and 2021, there was a significant increase, peaking at $153,168 million. A decline is observed in 2022 to $122,035 million, followed by a recovery and continued growth through 2023 and 2024.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm shows a consistent upward trend from 2019 to 2023, growing from $2,183 million to $5,003 million. This increase reflects improving cash generation capabilities. However, in 2024, there is a slight reduction to $4,801 million, indicating a small contraction in free cash flow compared to the previous year.
- EV/FCFF Ratio
- The EV/FCFF ratio demonstrates considerable variability during the period. The ratio started at 33.3 in 2019, rose to a peak of 48.64 in 2021, then declined sharply to 31.28 in 2023. By 2024, the ratio increased again to 36.79. This fluctuation suggests changes in market valuation relative to the firm’s cash flow, reflecting evolving investor perceptions or operational performance.
- Summary
- Overall, the data reflects substantial growth in enterprise value and cash flow generation with some volatility in valuation multiples. The surge in enterprise value up to 2021, followed by a dip in 2022 and recovery thereafter, combined with steadily increasing cash flows (except for a minor decrease in 2024), points to a generally positive financial trajectory with occasional valuation adjustments. The EV/FCFF ratio’s swings indicate shifting market conditions or changing expectations regarding the company's future performance.