Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Marriott International Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Marriott International Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Marriott International Inc. FCFF decreased from 2017 to 2018 and from 2018 to 2019. |
Interest Paid, Net of Tax
Marriott International Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
2 2019 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= 348 × 20.70% = 72
Enterprise Value to FCFF Ratio, Current
Marriott International Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 37,405) |
| Free cash flow to the firm (FCFF) | 1,308) |
| Valuation Ratio | |
| EV/FCFF | 28.60 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Airbnb Inc. | 24.76 |
| Booking Holdings Inc. | 15.97 |
| Carnival Corp. & plc | 13.73 |
| Chipotle Mexican Grill Inc. | 64.31 |
| McDonald’s Corp. | 28.46 |
| Starbucks Corp. | 27.21 |
| EV/FCFF, Sector | |
| Consumer Services | 44.01 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 53.04 |
Based on: 10-K (reporting date: 2019-12-31).
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
Marriott International Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 49,504) | 51,303) | 58,357) | 41,398) | 20,472) | |
| Free cash flow to the firm (FCFF)2 | 1,308) | 2,032) | 2,163) | 1,412) | 1,082) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 37.85 | 25.25 | 26.98 | 29.32 | 18.92 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 15.01 | — | — | — | — | |
| Carnival Corp. & plc | 175.24 | 24.76 | — | — | — | |
| Chipotle Mexican Grill Inc. | 56.84 | — | — | — | — | |
| McDonald’s Corp. | 29.06 | — | — | — | — | |
| Starbucks Corp. | 30.98 | 8.45 | — | — | — | |
| EV/FCFF, Sector | ||||||
| Consumer Services | 28.28 | — | — | — | — | |
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | 31.02 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 49,504 ÷ 1,308 = 37.85
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Marriott International Inc. EV/FCFF ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |