Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Micron Technology Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02).
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The financial trajectory of the firm exhibits significant volatility followed by a period of rapid acceleration in cash generation. Between 2021 and 2026, a clear pattern emerges consisting of initial growth, a sharp contraction, and a subsequent exponential increase in both operating cash flows and free cash flow to the firm (FCFF).
- Cash Flow Volatility and Contraction
- A peak in net cash provided by operating activities was observed in 2022 at US$ 15,181 million, with FCFF reaching US$ 3,324 million. This was followed by a severe decline in 2023, where operating cash flow dropped to US$ 1,559 million and FCFF transitioned to a negative value of US$ 5,698 million. The divergence between positive operating cash flow and negative FCFF in 2023 indicates that capital expenditures significantly exceeded the cash generated from core operations during that period.
- Recovery and Stabilization
- A recovery phase is evident beginning in 2024, as operating cash flow increased to US$ 8,507 million and FCFF returned to positive territory at US$ 584 million. This upward momentum continued into 2025, with operating cash flow rising to US$ 17,525 million and FCFF increasing to US$ 2,321 million, suggesting a stabilization of the capital expenditure cycle relative to operational earnings.
- Projected Exponential Growth
- The projection for 2026 indicates a dramatic escalation in liquidity. Net cash provided by operating activities is expected to reach US$ 89,675 million, while FCFF is projected to surge to US$ 59,457 million. This represents a massive expansion in the firm's capacity to generate cash available to all capital providers, marking a substantial shift in the firm's financial scale compared to the 2021-2025 period.
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Interest Paid, Net of Tax
Micron Technology Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02).
2 2026 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 197 × 14.80% = 29
3 2026 Calculation
Interest capitalized as part of cost of property, plant, and equipment, tax = Interest capitalized as part of cost of property, plant, and equipment × EITR
= 383 × 14.80% = 57
Analysis of the interest expenditures reveals a divergent trend between immediate cash outflows for interest and the capitalization of interest for long-term assets over the observed period.
- Interest Paid, Net of Capitalization and Tax
- A consistent upward trajectory is observed from 2022 through 2025, with expenditures rising from 140 million US$ to a peak of 370 million US$. This growth period was followed by a sharp contraction in 2026, where the amount fell to 168 million US$, suggesting a potential reduction in total debt obligations or a strategic refinancing effort.
- Interest Capitalized as Part of PP&E
- Interest capitalized as part of property, plant, and equipment demonstrates a strong overall increase, growing from 62 million US$ in 2021 to 326 million US$ by 2026. The acceleration of this trend in 2025 and 2026 indicates a significant increase in capital-intensive projects and long-term infrastructure investments.
- Effective Income Tax Rate (EITR) Impact
- The effective income tax rate exhibited substantial volatility, starting at 6.30% in 2021, peaking at 36.40% in 2024, and settling at 14.80% in 2026. Given that interest costs are presented net of tax, the period of higher tax rates in 2023 and 2024 enhanced the tax-shield effect, potentially mitigating the impact of the rising interest payments on net cash flows during those years.
- Aggregate Interest Trend Analysis
- While direct interest payments declined sharply in the final year, the total interest burden—combining both paid and capitalized amounts—remained elevated due to the surge in capitalization. The shift in 2026 from expensed interest to capitalized interest suggests a transition in how financing costs are being recognized, moving from the income statement to the balance sheet as assets are developed.
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Enterprise Value to FCFF Ratio, Current
Micron Technology Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 929,225) |
| Free cash flow to the firm (FCFF) | 59,457) |
| Valuation Ratio | |
| EV/FCFF | 15.63 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | 139.98 |
| Analog Devices Inc. | 45.78 |
| Applied Materials Inc. | 51.22 |
| Broadcom Inc. | 56.31 |
| Intel Corp. | — |
| KLA Corp. | 50.99 |
| Lam Research Corp. | 57.05 |
| Marvell Technology Inc. | 96.91 |
| NVIDIA Corp. | 50.85 |
| Qualcomm Inc. | 13.40 |
| Texas Instruments Inc. | 95.43 |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | 77.41 |
| EV/FCFF, Industry | |
| Information Technology | 55.61 |
Based on: 10-K (reporting date: 2026-09-03).
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
Micron Technology Inc., historical EV/FCFF calculation, comparison to benchmarks
| Sep 3, 2026 | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 1,125,979) | 215,103) | 118,660) | 80,554) | 55,097) | 76,581) | |
| Free cash flow to the firm (FCFF)2 | 59,457) | 2,321) | 584) | (5,698) | 3,324) | 2,660) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 18.94 | 92.67 | 203.18 | — | 16.58 | 28.79 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | 57.07 | 72.30 | 225.41 | 38.82 | 43.41 | |
| Analog Devices Inc. | — | 28.20 | 33.82 | 25.61 | 23.12 | 39.16 | |
| Applied Materials Inc. | — | 34.62 | 17.55 | 17.40 | 19.06 | 26.22 | |
| Broadcom Inc. | — | 55.57 | 51.00 | 28.53 | 14.74 | 19.47 | |
| Intel Corp. | — | — | — | — | — | 16.94 | |
| KLA Corp. | 63.19 | 30.51 | 29.56 | 19.99 | 19.05 | 26.29 | |
| Lam Research Corp. | 77.24 | 22.85 | 24.56 | 17.99 | 24.08 | 24.40 | |
| Marvell Technology Inc. | 51.37 | 40.73 | 53.36 | 32.51 | 83.26 | 44.07 | |
| NVIDIA Corp. | 48.49 | 51.89 | 61.32 | 142.92 | 78.06 | 69.50 | |
| Qualcomm Inc. | — | 14.87 | 16.26 | 11.61 | 18.18 | 17.47 | |
| Texas Instruments Inc. | — | 68.04 | 89.36 | 89.85 | 27.02 | 24.20 | |
| EV/FCFF, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 49.68 | 56.96 | 59.47 | 35.63 | 26.35 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 43.70 | 39.04 | 33.99 | 26.47 | 27.37 | |
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02).
3 2026 Calculation
EV/FCFF = EV ÷ FCFF
= 1,125,979 ÷ 59,457 = 18.94
4 Click competitor name to see calculations.
The financial trajectory between 2021 and 2026 is characterized by significant volatility in cash flow generation and an exponential increase in enterprise valuation. While the valuation shows a consistent upward trend in the latter half of the period, the relationship between market value and actual cash production experienced extreme fluctuations.
- Enterprise Value (EV) Expansion
- A substantial growth pattern is observed in the enterprise value, which rose from 76,581 million USD in 2021 to 1,125,979 million USD by 2026. Following a temporary dip in 2022, the valuation accelerated rapidly, with a particularly aggressive increase occurring between 2025 and 2026.
- Free Cash Flow to the Firm (FCFF) Volatility
- Cash flow generation exhibited instability, marked by a significant deficit of 5,698 million USD in 2023. A slow recovery followed in 2024 and 2025, culminating in a dramatic surge to 59,457 million USD in 2026, suggesting a late-period shift toward high operational efficiency or a major increase in revenue realization.
- EV/FCFF Ratio Analysis
- The EV/FCFF ratio reflects the disconnect between valuation and cash flow during the mid-period. The ratio spiked to 203.18 in 2024, driven by a high enterprise value paired with minimal positive free cash flow. This indicates a period where the market valuation far exceeded the immediate cash-generating capacity of the firm. However, the ratio normalized to 18.94 by 2026, signaling that the massive increase in enterprise value was eventually supported by a corresponding surge in free cash flow.
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