Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
NVIDIA Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Net cash provided by operating activities
- The net cash provided by operating activities exhibited a generally increasing trend over the period presented. Starting at 4,761 million US dollars in early 2020, this metric increased to 5,822 million in early 2021 and reached 9,108 million in early 2022. However, in early 2023, a decline occurred, with cash generation falling to 5,641 million. This was followed by a substantial surge in early 2024 to 28,090 million, and a further increase to 64,089 million in early 2025. The significant growth observed in the last two years indicates a strong operational cash flow expansion, suggesting improved operational efficiency, increased revenue generation, or both.
- Free cash flow to the firm (FCFF)
- The free cash flow to the firm (FCFF) follows a similar pattern to operating cash flow, confirming the trends in operational liquidity and financial flexibility. FCFF began at 4,323 million US dollars in early 2020 and showed moderate growth to 4,830 million in early 2021. A notable increase occurred in early 2022 to 8,373 million. This was followed by a dip to 4,009 million in early 2023, mirroring the operational cash flow trend. From there, FCFF experienced a sharp rise to 27,243 million in early 2024, and subsequently to 61,066 million in early 2025. These changes reflect increased free cash generation after capital expenditures, highlighting enhanced capacity for investment, debt repayment, or shareholder returns in the latter part of the analysis period.
Interest Paid, Net of Tax
NVIDIA Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2 2025 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 246 × 13.30% = 33
The analysis of the effective income tax rate (EITR) over the given periods reveals notable fluctuations. Starting at 5.9% in early 2020, the rate experienced a significant decrease to 1.7% by early 2021, followed by a relatively stable period around 1.9% in early 2022. However, in early 2023, the EITR increased markedly to 21%, indicating a substantial rise in tax expenses relative to income. Subsequently, the rate declined to 12% in early 2024 and slightly increased to 13.3% in early 2025. This pattern suggests variability in the company's tax burden, with a pronounced peak in 2023 followed by a partial normalization in the following years.
Regarding cash paid for interest, net of tax, the trend shows a consistent upward movement from 51 million US dollars in early 2020 to 136 million in early 2021. The amount further increased to 241 million by early 2022, representing the highest point in the dataset. Following this peak, the cash outflow for interest slightly decreased to 201 million in early 2023. It then rose again to 222 million in early 2024 and marginally decreased to 213 million in early 2025. Overall, the pattern indicates an increasing cost related to interest payments over the analyzed period, with some minor fluctuations after the 2022 high.
In summary, the company experienced a volatile tax rate environment with a significant spike in tax expenses in 2023, while interest-related cash outflows generally trended upward with a peak in 2022 and minor variations thereafter. These trends may reflect changes in tax policies, debt levels, or financing strategies affecting the company's financial expenses and tax obligations.
Enterprise Value to FCFF Ratio, Current
NVIDIA Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 3,814,353) |
| Free cash flow to the firm (FCFF) | 61,066) |
| Valuation Ratio | |
| EV/FCFF | 62.46 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Advanced Micro Devices Inc. | 93.27 |
| Analog Devices Inc. | 36.45 |
| Applied Materials Inc. | 18.76 |
| Broadcom Inc. | 61.82 |
| Intel Corp. | — |
| KLA Corp. | 36.63 |
| Lam Research Corp. | 29.53 |
| Micron Technology Inc. | 248.14 |
| Qualcomm Inc. | 14.73 |
| Texas Instruments Inc. | 100.50 |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | 93.39 |
| EV/FCFF, Industry | |
| Information Technology | 49.57 |
Based on: 10-K (reporting date: 2025-01-26).
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
NVIDIA Corp., historical EV/FCFF calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 3,168,485) | 1,670,475) | 572,920) | 653,633) | 335,658) | 180,080) | |
| Free cash flow to the firm (FCFF)2 | 61,066) | 27,243) | 4,009) | 8,373) | 4,830) | 4,323) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 51.89 | 61.32 | 142.92 | 78.06 | 69.50 | 41.66 | |
| 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 | |
| Applied Materials Inc. | — | 17.55 | 17.40 | 19.06 | 26.22 | 22.52 | |
| Broadcom Inc. | — | 51.00 | 28.53 | 14.74 | 19.47 | 16.54 | |
| Intel Corp. | — | — | — | — | 16.94 | 11.08 | |
| KLA Corp. | — | 29.56 | 19.99 | 19.05 | 26.29 | 18.70 | |
| Lam Research Corp. | — | 24.56 | 17.99 | 24.08 | 24.40 | 26.78 | |
| Micron Technology Inc. | — | 203.18 | — | 16.58 | 28.79 | 188.88 | |
| Qualcomm Inc. | — | 16.26 | 11.61 | 18.18 | 17.47 | 30.89 | |
| 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: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 3,168,485 ÷ 61,066 = 51.89
4 Click competitor name to see calculations.
- Enterprise Value (EV)
-
The enterprise value shows a substantial upward trend over the observed periods. Starting at approximately $180 billion in early 2020, it nearly doubled by early 2021 and continued to rise sharply, reaching over $3.1 trillion by early 2025. A notable acceleration occurred between 2023 and 2025, where the value increased almost sixfold within two years, indicating significant growth in market valuation or expansion activities.
- Free Cash Flow to the Firm (FCFF)
-
Free cash flow to the firm exhibits variability, with a moderate increase from about $4.3 billion in 2020 to $8.4 billion in 2022. This was followed by a decline in 2023 to roughly $4 billion, but a sharp recovery occurred afterward, surging to approximately $27 billion in 2024 and further doubling to over $61 billion in 2025. The substantial increase in the last two years suggests improved operational efficiency, cash generation capability, or successful capital expenditure management.
- EV to FCFF Ratio
-
The EV/FCFF ratio initially rose from 41.66 in 2020 to a peak of nearly 143 in 2023, reflecting an increasing enterprise value relative to the free cash flow generated by the firm. This sharp increase may indicate market expectations of future growth or valuation inflation in that period. However, the ratio subsequently decreased to approximately 61.32 in 2024 and further to 51.89 in 2025, suggesting a rebalancing effect as free cash flow grew substantially faster than enterprise value towards the later years, potentially pointing to improved valuation metrics and a better alignment between enterprise value and cash flow generation.