Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Intuitive Surgical Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data reveals notable variations in key cash flow metrics over the five-year period.
- Net Cash Provided by Operating Activities
- The net cash generated from operating activities demonstrates an overall upward trajectory, increasing from approximately $1.48 billion in 2020 to $2.42 billion in 2024. This indicates improved operational efficiency or increased profitability over the years. However, there is a slight dip observed in 2022 where the figure decreases from $2.09 billion in 2021 to about $1.49 billion before rising again in the subsequent years. This suggests potential temporary challenges or fluctuations in operating cash flows during that period.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow available to the firm exhibits a more volatile pattern. It starts at around $1.14 billion in 2020, reaches a peak of nearly $1.75 billion in 2021, and then declines sharply to about $958 million in 2022. The downward trend continues into 2023 with a further decrease to roughly $750 million, followed by a significant recovery to approximately $1.3 billion in 2024. This volatility could be attributed to changes in capital expenditures, working capital requirements, or other investing activities impacting the free cash flow despite the increase in operating cash flows.
Overall, while operational cash generation has shown resilience and growth, free cash flow availability has faced challenges after 2021, highlighting areas where capital management or investment activity may have impacted liquidity. The rebound in 2024 suggests corrective actions or improved conditions contributing to enhanced free cash generation.
Interest Paid, Net of Tax
Intuitive Surgical Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 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).
2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 0 × 12.58% = 0
The effective income tax rate (EITR) for the company has shown variability over the five-year period from 2020 to 2024. Starting at 11.62% in 2020, the rate decreased to a low of 8.58% in 2021, indicating a reduction in tax burden or improved tax planning during that year. However, in 2022, the EITR increased significantly to 16.33%, the highest level observed in the period, suggesting a possible change in taxable income composition or tax regulations impacting the company during that year.
The tax rate dropped sharply again in 2023 to 7.23%, the lowest point over the timeframe, potentially reflecting increased tax credits, deductions, or adjustments in income that resulted in a lighter tax expense. By 2024, the effective tax rate rose to 12.58%, partly recovering from the prior year's low but still below the peak of 2022.
Overall, the EITR reflects fluctuating tax conditions, with a general pattern of alternating decreases and increases rather than a stable trend. These fluctuations could be influenced by changes in profitability, tax legislation, or strategic tax management.
Regarding interest paid, net of tax, no data is available for any of the years, preventing analysis of trends or implications in this area.
Enterprise Value to FCFF Ratio, Current
Intuitive Surgical Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 187,374,015) |
| Free cash flow to the firm (FCFF) | 1,303,800) |
| Valuation Ratio | |
| EV/FCFF | 143.71 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Abbott Laboratories | 35.18 |
| CVS Health Corp. | 16.72 |
| Elevance Health Inc. | 15.10 |
| Medtronic PLC | 22.33 |
| UnitedHealth Group Inc. | 14.25 |
| EV/FCFF, Sector | |
| Health Care Equipment & Services | 21.03 |
| EV/FCFF, Industry | |
| Health Care | 21.38 |
Based on: 10-K (reporting date: 2024-12-31).
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
Intuitive Surgical Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 200,047,585) | 128,123,188) | 81,892,877) | 98,018,095) | 87,689,991) | |
| Free cash flow to the firm (FCFF)2 | 1,303,800) | 749,600) | 958,400) | 1,749,900) | 1,143,300) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 153.43 | 170.92 | 85.45 | 56.01 | 76.70 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Abbott Laboratories | 35.21 | 36.51 | 23.24 | 23.47 | 36.94 | |
| CVS Health Corp. | 15.91 | 11.96 | 10.00 | 10.30 | 9.42 | |
| Elevance Health Inc. | 15.57 | 14.19 | 13.32 | 12.74 | 6.04 | |
| Medtronic PLC | 20.58 | 26.54 | 20.32 | 33.84 | 21.43 | |
| UnitedHealth Group Inc. | 20.57 | 17.59 | 19.30 | 22.21 | 15.82 | |
| EV/FCFF, Sector | ||||||
| Health Care Equipment & Services | 23.85 | 20.46 | 17.93 | 19.79 | 16.36 | |
| EV/FCFF, Industry | ||||||
| Health Care | 23.63 | 24.95 | 17.94 | 17.18 | 18.55 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 200,047,585 ÷ 1,303,800 = 153.43
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a fluctuating upward trend over the five-year period. Starting at approximately 87 billion USD in 2020, it increased to roughly 98 billion USD in 2021. It then declined notably to about 82 billion USD in 2022 before surging significantly to over 128 billion USD in 2023. This upward momentum continued into 2024, reaching an approximate value of 200 billion USD. The pronounced increase between 2022 and 2024 suggests substantial market valuation growth or changes in capital structure during this period.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm demonstrated variability throughout the timeline. It rose from approximately 1.14 billion USD in 2020 to nearly 1.75 billion USD in 2021, indicating improved cash generation. Subsequently, there was a notable decline to around 958 million USD in 2022, followed by a further decrease to about 750 million USD in 2023. However, FCFF increased again in 2024, reaching approximately 1.3 billion USD. This pattern reflects periods of both strengthening and weakening operational cash flows, with a recovery observed in the most recent year.
- EV/FCFF Ratio
- The EV to FCFF ratio showed considerable fluctuation and overall upward movement during the period. It decreased from 76.7 in 2020 to 56.01 in 2021, suggesting a better valuation relative to free cash flow. Nevertheless, the ratio increased sharply to 85.45 in 2022 and surged dramatically to 170.92 in 2023, before slightly declining to 153.43 in 2024. The elevated ratios in the last two years indicate that enterprise value grew much faster than free cash flow, potentially signaling overvaluation or expectations of future growth not yet realized in cash flow terms.