O’Reilly Automotive Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	2,164,685)	1,752,302)	1,391,042)	1,324,487)	1,133,804)
Net noncash charges	379,772)	359,029)	325,399)	312,638)	263,314)
Changes in operating assets and liabilities	662,853)	725,272)	(7,962)	90,430)	6,569)
Net cash provided by operating activities	3,207,310)	2,836,603)	1,708,479)	1,727,555)	1,403,687)
Interest paid, net of capitalized interest, net of tax¹	112,274)	123,493)	104,611)	92,204)	53,837)
Interest costs capitalized, net of tax²	5,447)	7,887)	10,101)	7,114)	5,885)
Purchases of property and equipment	(442,853)	(465,579)	(628,057)	(504,268)	(465,940)
Proceeds from sale of property and equipment	9,494)	15,770)	7,118)	4,784)	4,464)
Free cash flow to the firm (FCFF)	2,891,672)	2,518,174)	1,202,252)	1,327,389)	1,001,933)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the O’Reilly Automotive Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	O’Reilly Automotive Inc. FCFF increased from 2019 to 2020 and from 2020 to 2021.

O’Reilly Automotive Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	22.19%	22.68%	22.30%	21.82%	30.77%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax	144,293)	159,717)	134,634)	117,938)	77,766)
Less: Interest paid, net of capitalized interest, tax²	32,019)	36,224)	30,023)	25,734)	23,929)
Interest paid, net of capitalized interest, net of tax	112,274)	123,493)	104,611)	92,204)	53,837)
Interest Costs Capitalized, Net of Tax
Interest costs capitalized, before tax	7,000)	10,200)	13,000)	9,100)	8,500)
Less: Interest costs capitalized, tax³	1,553)	2,313)	2,899)	1,986)	2,615)
Interest costs capitalized, net of tax	5,447)	7,887)	10,101)	7,114)	5,885)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² 2021 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 144,293 × 22.19% = 32,019

³ 2021 Calculation
Interest costs capitalized, tax = Interest costs capitalized × EITR
= 7,000 × 22.19% = 1,553

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O’Reilly Automotive Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	55,622,513)
Free cash flow to the firm (FCFF)	2,891,672)
Valuation Ratio
EV/FCFF	19.24
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	49.48
Home Depot Inc.	19.67
Lowe’s Cos. Inc.	22.78
TJX Cos. Inc.	23.83
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	152.01
EV/FCFF, Industry
Consumer Discretionary	64.73

Based on: 10-K (reporting date: 2021-12-31).

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.

O’Reilly Automotive Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	46,704,845)	35,063,126)	31,466,172)	32,224,896)	23,363,639)
Free cash flow to the firm (FCFF)²	2,891,672)	2,518,174)	1,202,252)	1,327,389)	1,001,933)
Valuation Ratio
EV/FCFF³	16.15	13.92	26.17	24.28	23.32
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	—	78.83	74.39	—	—
Home Depot Inc.	20.22	19.11	21.30	—	—
Lowe’s Cos. Inc.	14.88	20.95	18.88	—	—
TJX Cos. Inc.	18.30	19.08	21.16	—	—
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	130.00	51.35	42.44	—	—
EV/FCFF, Industry
Consumer Discretionary	66.77	52.40	31.02	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 46,704,845 ÷ 2,891,672 = 16.15

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	O’Reilly Automotive Inc. EV/FCFF ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

O’Reilly Automotive Inc. (NASDAQ:ORLY)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical