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: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1, 2 See details »
- Net cash provided by operating activities
- The net cash provided by operating activities exhibited significant fluctuations over the observed periods. Initially, there was a notable decline from 13,189 million USD in 2019 to 8,306 million USD in 2020, indicating a reduction in operating cash generation. Subsequently, the figure rebounded to 12,468 million USD in 2021 and continued to grow, reaching a peak of 15,181 million USD in 2022. However, a marked decrease occurred in 2023, where the cash provided dropped sharply to 1,559 million USD. In 2024, there was a partial recovery to 8,507 million USD, though this level remained substantially below the earlier peak values.
- Free cash flow to the firm (FCFF)
- The free cash flow to the firm demonstrated considerable volatility across the periods. Starting at 3,550 million USD in 2019, FCFF sharply declined to a low of 302 million USD in 2020, reflecting tighter cash availability after operating and capital expenditures. It then improved to 2,660 million USD in 2021 and further increased to 3,324 million USD in 2022, suggesting enhanced cash generation capability. Nonetheless, in 2023, FCFF turned negative, registering -5,698 million USD, which indicates substantial cash outflows possibly due to increased investments or operational challenges. The figure moved back into positive territory in 2024 with 584 million USD, although still significantly lower than the earlier positive periods.
Interest Paid, Net of Tax
Micron Technology Inc., interest paid, net of tax calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
2 2024 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 503 × 36.40% = 183
3 2024 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
= 225 × 36.40% = 82
- Effective Income Tax Rate (EITR)
- The effective income tax rate experienced fluctuations over the observed periods. Starting at 9.7% in 2019, it slightly decreased to 9.4% in 2020 and further dropped to its lowest point of 6.3% in 2021. However, this rate increased again in 2022 to 9.3%, followed by a substantial rise to 21% in 2023 and a further significant increase reaching 36.4% in 2024. This pattern indicates growing tax expenses relative to income in recent years, suggesting changes in tax regulation, profitability distribution, or geographic income allocation influencing tax liabilities.
- Interest Paid, Net of Amounts Capitalized, Net of Tax
- Interest expense paid, net of tax and capitalization, showed a generally increasing trend across the periods. Beginning at $48 million in 2019, it more than tripled to $149 million in 2020 and increased slightly to $160 million in 2021. Despite a minor decline to $140 million in 2022, the amount surged significantly in 2023 to $255 million, followed by another increase to $320 million in 2024. This upward trajectory reflects increased borrowing costs or higher debt levels impacting net interest expense over time.
- Interest Capitalized as Part of Cost of Property, Plant, and Equipment, Net of Tax
- The amount of interest capitalized into property, plant, and equipment costs demonstrated variability through the periods. Initially at $93 million in 2019, it declined to $70 million in 2020 and further decreased to $62 million in 2021. It then rebounded to $70 million in 2022 before dramatically rising to $164 million in 2023. In 2024, this capitalized interest slightly decreased to $143 million. The fluctuations suggest changes in capital expenditure projects or shifts in accounting practices regarding interest capitalization.
Enterprise Value to FCFF Ratio, Current
Micron Technology Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 143,223) |
| Free cash flow to the firm (FCFF) | 584) |
| Valuation Ratio | |
| EV/FCFF | 245.24 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | 92.01 |
| Analog Devices Inc. | 36.61 |
| Applied Materials Inc. | 18.74 |
| Broadcom Inc. | 63.20 |
| Intel Corp. | — |
| KLA Corp. | 36.87 |
| Lam Research Corp. | 29.57 |
| NVIDIA Corp. | 62.56 |
| Qualcomm Inc. | 14.80 |
| Texas Instruments Inc. | 100.75 |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | 93.85 |
| EV/FCFF, Industry | |
| Information Technology | 50.06 |
Based on: 10-K (reporting date: 2024-08-29).
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
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 118,660) | 80,554) | 55,097) | 76,581) | 57,090) | 49,156) | |
| Free cash flow to the firm (FCFF)2 | 584) | (5,698) | 3,324) | 2,660) | 302) | 3,550) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 203.18 | — | 16.58 | 28.79 | 188.88 | 13.85 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Advanced Micro Devices Inc. | 72.30 | 225.41 | 38.82 | 43.41 | 126.98 | — | |
| Analog Devices Inc. | 33.82 | 25.61 | 23.12 | 39.16 | 27.12 | 21.67 | |
| Applied Materials Inc. | 17.55 | 17.40 | 19.06 | 26.22 | 22.52 | 18.91 | |
| Broadcom Inc. | 51.00 | 28.53 | 14.74 | 19.47 | 16.54 | 15.04 | |
| Intel Corp. | — | — | — | 16.94 | 11.08 | — | |
| KLA Corp. | 29.56 | 19.99 | 19.05 | 26.29 | 18.70 | 20.92 | |
| Lam Research Corp. | 24.56 | 17.99 | 24.08 | 24.40 | 26.78 | 10.44 | |
| NVIDIA Corp. | 61.32 | 142.92 | 78.06 | 69.50 | 41.66 | — | |
| Qualcomm Inc. | 16.26 | 11.61 | 18.18 | 17.47 | 30.89 | 14.91 | |
| Texas Instruments Inc. | 89.36 | 89.85 | 27.02 | 24.20 | 27.67 | — | |
| EV/FCFF, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 56.97 | 60.28 | 34.98 | 26.15 | 21.95 | — | |
| EV/FCFF, Industry | |||||||
| Information Technology | 40.41 | 34.37 | 26.67 | 27.51 | 23.95 | — | |
Based on: 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), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 118,660 ÷ 584 = 203.18
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited notable fluctuation over the analyzed periods. Initially, there was a steady upward trend from 49,156 million USD in 2019 to 76,581 million USD in 2021, indicating a significant increase in the company's market valuation. This was followed by a sharp decline to 55,097 million USD in 2022. Subsequently, the value rebounded steeply, reaching 80,554 million USD in 2023 and further advancing to 118,660 million USD by 2024. This recent substantial increase suggests renewed investor confidence or other factors driving valuation growth.
- Free Cash Flow to the Firm (FCFF)
- FCFF values showed considerable volatility throughout the period. Starting from 3,550 million USD in 2019, FCFF sharply decreased to 302 million USD in 2020. It then improved substantially to 2,660 million USD in 2021 and continued to rise moderately to 3,324 million USD in 2022, implying better cash generation. However, in 2023, the firm experienced a significant negative cash flow of -5,698 million USD, marking a substantial cash outflow. The following year showed a recovery back to a positive figure of 584 million USD, indicating efforts to restore cash flow stability.
- EV/FCFF Ratio
- The EV to FCFF ratio displayed pronounced volatility linked to the fluctuations in FCFF and EV. In 2019, the ratio stood at a moderate 13.85, reflecting balanced valuation relative to cash flow. In 2020, the ratio soared dramatically to 188.88, mainly due to severely reduced FCFF despite valuation increases, signaling potential overvaluation or cash flow issues. Subsequently, it dropped to 28.79 in 2021 and 16.58 in 2022, reflecting improving cash flow positions relative to enterprise value. Data for 2023 is unavailable, likely due to negative FCFF making the ratio less meaningful. In 2024, the ratio surged again to 203.18, indicating that despite positive FCFF, the enterprise value grew disproportionately, potentially suggesting heightened market expectations or valuation premiums.