Enterprise Value to FCFF (EV/FCFF)
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- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
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Free Cash Flow to The Firm (FCFF)
Qualcomm Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
- Net Cash Provided by Operating Activities
- The net cash generated from operating activities exhibits a fluctuating yet overall upward trend over the analyzed periods. Beginning at $7,286 million in 2019, the figure decreased to $5,814 million in 2020, indicating a contraction in cash generation by operations. However, a significant rebound occurred in 2021, with the metric rising sharply to $10,536 million. Although there was a slight decline in 2022 to $9,266 million, the value increased again in the subsequent years, reaching $11,698 million in 2023 and further to $12,293 million in 2024, suggesting improved operating efficiency or higher cash inflows from core business activities over the longer term.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm also follows a similar pattern of volatility followed by growth. Starting at $6,729 million in 2019, FCFF dropped to $4,868 million in 2020, reflecting reduced cash available after operating expenses and capital expenditures. The year 2021 saw a robust recovery to $9,071 million, followed by a decline to $7,436 million in 2022. Subsequent years demonstrated a strong uptrend, with FCFF climbing to $10,983 million in 2023 and $11,905 million in 2024. This trajectory indicates enhanced ability to generate discretionary cash flow potentially available for debt repayment, reinvestment, or distribution to shareholders.
- Overall Analysis
- The data indicates that both key cash flow metrics experienced a dip in 2020, which may suggest external challenges or operational disruptions during that period. Recovery and growth in the following years emphasize resilience and effective management of cash-generating operations. The alignment of trends between net operating cash flow and free cash flow to the firm suggests consistency in managing capital expenditure relative to operational inflows. The incremental increases in the latest years point toward a consolidation of financial strength and possibly improved investment capacity.
Interest Paid, Net of Tax
Qualcomm Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
2 2024 Calculation
Cash interest paid related to commercial paper program and long-term debt, tax = Cash interest paid related to commercial paper program and long-term debt × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited a significant decline from 41.37% in late 2019 to a low of 9% in 2020. Subsequently, it stabilized somewhat but remained at historically low levels, fluctuating between 1% and 13% from 2020 through 2024. Notably, in the last two reported years, the rate was exceptionally low, at 1% in 2023 and rising slightly to 2% in 2024. This trend indicates a substantial reduction in the tax burden compared to 2019.
- Cash Interest Paid Related to Commercial Paper Program and Long-term Debt, Net of Tax
- The cash interest expense showed an overall increasing trend across the years. Starting at $330 million in 2019, it rose to $461 million in 2020. After a slight decline to $420 million in 2021, the cash interest paid increased steadily each year, reaching $643 million in 2024. This upward trend suggests a growing cost of debt financing or an increased debt level over the period.
Enterprise Value to FCFF Ratio, Current
Qualcomm Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| 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. | |
| Monolithic Power Systems Inc. | |
| NVIDIA Corp. | |
| Texas Instruments Inc. | |
| EV/FCFF, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-09-29).
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
Qualcomm Inc., historical EV/FCFF calculation, comparison to benchmarks
| Sep 29, 2024 | Sep 24, 2023 | Sep 25, 2022 | Sep 26, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| 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. | |||||||
| Monolithic Power Systems Inc. | |||||||
| NVIDIA Corp. | |||||||
| Texas Instruments Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Semiconductors & Semiconductor Equipment | |||||||
| EV/FCFF, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trend
- The enterprise value exhibited an overall upward trend from 2019 to 2024. It increased significantly from approximately $100.3 billion in 2019 to around $150.4 billion in 2020. Following that, a moderate rise to $158.4 billion was observed in 2021. However, it declined during 2022 and 2023, reaching a low near $127.5 billion. The value rebounded sharply in 2024, surging to approximately $193.5 billion, marking the highest point in the period analyzed.
- Free Cash Flow to the Firm (FCFF) Trend
- FCFF demonstrated a less consistent pattern but with an overall increase over the six-year period. Starting at about $6.7 billion in 2019, it decreased to approximately $4.9 billion in 2020, before rising substantially to $9.1 billion in 2021. After a slight decrease in 2022, FCFF grew notably in the two most recent years, peaking at nearly $11.9 billion in 2024. This upward trend in the latter years suggests improved operational cash generation capability.
- EV to FCFF Ratio Analysis
- The EV/FCFF ratio fluctuated appreciably over the timeframe. It was lowest in 2019 at around 14.9, then spiked sharply to 30.9 in 2020, indicating a high valuation relative to cash flow during that year. In 2021, it decreased substantially to 17.5 and remained relatively stable in 2022 at 18.2. The ratio dropped further to a low of 11.6 in 2023, suggesting an increased free cash flow relative to enterprise value, before rising again to 16.3 in 2024. These variations may reflect changing market perceptions, company performance, or external economic factors affecting valuation multiples.
- Overall Insights
- The data reveals significant volatility in enterprise value, free cash flow, and their valuation ratio over the period analyzed. The notable dip in FCFF in 2020 corresponds with the highest EV/FCFF multiple, signaling possible market caution or operational challenges during that year. Conversely, the robust growth in FCFF combined with a lower EV/FCFF ratio in 2023 implies improved operational efficiency and potentially more attractive valuation. The strong increase in enterprise value in 2024 alongside a moderate rise in EV/FCFF suggests renewed investor confidence or strategic developments impacting valuation positively.