Enterprise Value to FCFF (EV/FCFF)
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Monolithic Power Systems Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Free Cash Flow to The Firm (FCFF)
Monolithic Power Systems 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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited an overall upward trend across the five-year period. Starting at $267.8 million in 2020, it increased to $320.0 million in 2021, representing a significant improvement. However, there was a notable decline in 2022, where the figure dropped to $246.7 million. Following this decrease, the cash inflow from operating activities surged sharply to $638.2 million in 2023 and further increased to $788.4 million in 2024, indicating considerable growth in operational cash generation towards the latter years.
- Free Cash Flow to the Firm (FCFF)
- The FCFF followed a similar pattern to operating cash flows but remained slightly lower in absolute terms throughout the period. It began at $212.2 million in 2020 and rose moderately to $225.6 million in 2021. Thereafter, FCFF declined to $187.8 million in 2022, mirroring the dip seen in operating cash flows. However, in 2023, FCFF experienced a substantial increase to $580.6 million, followed by a further rise to $642.3 million in 2024. This indicates that the company has strengthened its ability to generate free cash flow significantly in the most recent years.
- Summary of Trends
- The data reflects strong operational cash flow growth over the five years despite a setback in 2022. The pronounced rebound and sustained increase in both operating cash flow and free cash flow from 2023 onwards suggest improved operational efficiency, stronger profitability, or effective working capital management. The widening gap between the operating cash flow and FCFF is relatively narrow, indicating that capital expenditures or other cash outflows have not drastically affected free cash flow to the firm during this timeframe.
Interest Paid, Net of Tax
Monolithic Power Systems Inc., interest paid, net of tax calculation
US$ 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
= × =
The analysis of the effective income tax rate (EITR) over the five-year period from 2020 to 2024 reveals a clear upward trend. Starting at a low rate of 2.9% in 2020, the tax rate rose significantly to 11.1% in 2021, nearly quadrupling compared to the previous year. This increase continued, reaching 16.6% in 2022. Although there was a slight decline to 15.5% in 2023, the rate climbed again to 21% in 2024, marking the highest tax rate within the observed timeframe.
The consistent increase in the effective income tax rate, especially the sharp rise from 2020 to 2022 and the peak in 2024, could indicate changes in the company's tax planning strategies, alterations in tax regulations, or shifts in the sources and geographic mix of taxable income. The minor decrease in 2023 suggests a temporary adjustment or relief in tax obligations during that year.
Regarding the interest paid, net of tax, there is an absence of data throughout all the periods, which prevents any analysis or conclusions related to the company's interest expenses or debt servicing costs.
- Effective Income Tax Rate (EITR)
- Since 2020, the EITR has shown a generally increasing trend, rising from 2.9% to 21% over five years.
- There was a steep increase between 2020 and 2022, with rates more than quintupling in that interval.
- The slight decrease in 2023 to 15.5% represents a temporary easing before a further rise in 2024.
- The growth in the EITR suggests potential changes in tax policies, income composition, or geographic income sources.
- Interest Paid, Net of Tax
- No data available for any year, precluding analysis of interest-related expenses or trends.
Enterprise Value to FCFF Ratio, Current
Monolithic Power Systems Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/FCFF, Industry | |
| Information Technology | |
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
Monolithic Power Systems 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 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| EV/FCFF, Industry | ||||||
| Information Technology | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value has shown an overall increasing trend from 2020 to 2023, rising from approximately $17.15 billion to $33.90 billion. However, in 2024, there is a notable decline to about $26.85 billion, indicating a reduction after a period of strong growth.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm experienced moderate growth from 2020 through 2021, increasing from approximately $212 million to $226 million. There was a decline in 2022 to about $188 million, followed by a significant recovery and substantial increase in 2023 and 2024, reaching $581 million and $642 million respectively. This sharp increase suggests improved operational efficiency or stronger cash generation capabilities in the latter years.
- EV/FCFF Ratio
- The valuation multiple represented by EV to FCFF exhibits a high and increasing trend from 2020 to 2022, climbing from 80.84x to a peak of 117.73x. This indicates that the enterprise value was growing faster than free cash flow, possibly signaling overvaluation or market optimism during this period. From 2023 onwards, the ratio decreases sharply to 58.38x and further to 41.8x in 2024, reflecting a more favorable valuation relative to cash flow. This decline is driven by both the decrease in enterprise value in 2024 and the strong increase in free cash flow, suggesting improved fundamentals or market recalibration.