Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Mondelēz International Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial information indicates fluctuations in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the five-year period. While both metrics generally remain positive, their trajectories exhibit distinct patterns.
- Net Cash from Operations
- Net cash provided by operating activities decreased from US$4,141 million in 2021 to US$3,908 million in 2022, representing a decline of approximately 5.9%. A subsequent increase was observed in 2023, reaching US$4,714 million, a rise of roughly 20.9% from the prior year. This upward trend continued into 2024 with a further increase to US$4,910 million, though the rate of growth slowed. In 2025, net cash from operations decreased to US$4,514 million, a reduction of approximately 8.5% from 2024.
- Free Cash Flow to the Firm (FCFF)
- FCFF followed a similar pattern to net cash from operations, though the magnitudes of change differed. FCFF decreased from US$3,410 million in 2021 to US$3,257 million in 2022, a decrease of around 4.5%. A substantial increase occurred in 2023, with FCFF reaching US$3,859 million, representing a growth of approximately 18.8%. The growth rate slowed in 2024, with FCFF at US$3,823 million. Finally, FCFF decreased to US$3,406 million in 2025, a decline of approximately 11.2% from 2024.
The correlation between net cash from operations and FCFF is evident, as changes in the former generally correspond to changes in the latter. The decrease in both metrics in 2025 warrants further investigation to determine the underlying causes, such as changes in working capital requirements, capital expenditures, or tax payments. The relatively strong performance in 2023 suggests a period of improved operational efficiency or favorable market conditions. The slowing growth in 2024, followed by a decline in 2025, indicates a potential shift in the company’s financial performance.
- FCFF Trend
- Overall, FCFF demonstrates a cyclical pattern over the observed period. While a general upward trend is apparent between 2022 and 2023, the most recent year shows a notable decrease, suggesting potential challenges to sustained cash flow generation. Continued monitoring of these trends is recommended.
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Interest Paid, Net of Tax
Mondelēz International Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
2 2025 Calculation
Cash paid, interest, tax = Cash paid, interest × EITR
= 570 × 25.90% = 148
The analysis reveals a fluctuating, yet generally increasing, trend in cash paid for interest, net of tax, alongside a decreasing, then increasing, effective income tax rate over the five-year period. These movements warrant further investigation to understand their combined impact on the company’s financial performance.
- Cash Paid, Interest, Net of Tax
- Cash paid for interest, net of tax, demonstrates an upward trajectory overall. Beginning at US$310 million in 2021, it increased to US$403 million in 2022, representing a substantial rise. Subsequent increases were more moderate, reaching US$420 million in 2023 and US$424 million in 2024. A slight decrease to US$422 million is observed in 2025. This suggests a growing interest expense, potentially due to increased debt levels or rising interest rates, with a stabilization in the most recent year.
- Effective Income Tax Rate
- The effective income tax rate (EITR) experienced a decline from 27.20% in 2021 to 26.10% in 2023. This decrease could be attributed to changes in tax laws, tax planning strategies, or shifts in the geographic distribution of profits. However, the EITR increased to 25.90% in 2025, potentially indicating a reversal of these prior effects or changes in the company’s taxable income composition.
- Combined Impact
- The interplay between the increasing net interest paid and the fluctuating EITR is noteworthy. While the decreasing EITR in 2021-2023 partially offset the rising interest expense, the increase in the EITR in 2025 could exacerbate the impact of interest payments on net income. The net effect of these changes on profitability requires further analysis, considering other income statement items.
Continued monitoring of these trends is recommended to assess their long-term implications for the company’s financial health and to inform strategic decision-making regarding debt management and tax planning.
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Enterprise Value to FCFF Ratio, Current
Mondelēz International Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 92,429) |
| Free cash flow to the firm (FCFF) | 3,406) |
| Valuation Ratio | |
| EV/FCFF | 27.13 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Coca-Cola Co. | 52.48 |
| PepsiCo Inc. | 25.54 |
| Philip Morris International Inc. | 25.04 |
| EV/FCFF, Sector | |
| Food, Beverage & Tobacco | 31.19 |
| EV/FCFF, Industry | |
| Consumer Staples | 38.45 |
Based on: 10-K (reporting date: 2025-12-31).
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
Mondelēz International Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 95,275) | 90,711) | 121,136) | 110,903) | 109,066) | |
| Free cash flow to the firm (FCFF)2 | 3,406) | 3,823) | 3,859) | 3,257) | 3,410) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 27.97 | 23.73 | 31.39 | 34.05 | 31.98 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Coca-Cola Co. | 55.79 | 54.19 | 26.54 | 27.95 | 25.28 | |
| PepsiCo Inc. | 27.28 | 26.33 | 28.63 | 40.39 | 33.08 | |
| Philip Morris International Inc. | 27.50 | 22.54 | 20.71 | 19.53 | 16.35 | |
| EV/FCFF, Sector | ||||||
| Food, Beverage & Tobacco | 33.43 | 30.16 | 26.10 | 28.47 | 24.71 | |
| EV/FCFF, Industry | ||||||
| Consumer Staples | 35.39 | 31.10 | 30.22 | 30.06 | 20.91 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 95,275 ÷ 3,406 = 27.97
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits fluctuations over the five-year period. Initial values indicate a relatively stable, albeit high, ratio, followed by a notable decrease and subsequent stabilization.
- Enterprise Value (EV)
- Enterprise Value increased from US$109,066 million in 2021 to US$110,903 million in 2022, representing a modest increase. A further increase to US$121,136 million was observed in 2023. However, a significant decline occurred in 2024, with EV falling to US$90,711 million, followed by a slight recovery to US$95,275 million in 2025. This suggests potential shifts in market valuation or capital structure.
- Free Cash Flow to the Firm (FCFF)
- Free Cash Flow to the Firm experienced a slight decrease from US$3,410 million in 2021 to US$3,257 million in 2022. FCFF then increased to US$3,859 million in 2023 and remained relatively stable at US$3,823 million in 2024. A decrease to US$3,406 million was recorded in 2025, potentially reflecting changes in operational cash flow or investment activities.
- EV/FCFF Ratio
- The EV/FCFF ratio began at 31.98 in 2021 and rose to 34.05 in 2022, indicating a potentially increasing premium placed on the firm’s value relative to its cash flow generation. The ratio decreased to 31.39 in 2023. A substantial decrease was observed in 2024, with the ratio falling to 23.73, likely driven by the significant decline in Enterprise Value. The ratio stabilized somewhat in 2025, increasing to 27.97. This suggests that the market’s assessment of the firm’s value relative to its free cash flow has become more favorable in recent periods, particularly in 2024, but has experienced some reversion in the latest year.
The observed volatility in the EV/FCFF ratio warrants further investigation into the underlying drivers of both Enterprise Value and Free Cash Flow to the Firm. The decrease in EV in 2024 is a key area for analysis, as it significantly impacted the ratio. The fluctuations in FCFF, while less dramatic, also contribute to the overall trend.
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