Enterprise Value to FCFF (EV/FCFF)
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- Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
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Free Cash Flow to The Firm (FCFF)
Roper Technologies Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 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).
- Cash Provided by Operating Activities
- The cash flow generated from operating activities exhibited an increasing trend from 2018 through 2021, rising steadily from approximately 1,430 million US dollars to about 1,866 million US dollars. This progression indicates an enhancement in the company's core operational cash generation over that four-year span. However, in 2022, there was a significant decline to approximately 607 million US dollars, representing a substantial reduction compared to the previous year, which may suggest operational challenges or changes in working capital management.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow available to all capital providers also increased consistently from 2018 to 2021, starting at around 1,505 million US dollars in 2018 and reaching a peak of nearly 1,975 million US dollars in 2021. This upward trend reflects improving efficiency and cash generation after operating and investing activities over these years. Similar to operating cash flow, FCFF experienced a pronounced decrease in 2022, falling to approximately 695 million US dollars. This sharp decline could indicate higher capital expenditures, reduced cash inflows, or other factors affecting free cash availability.
- Overall Trends and Insights
- During the four-year period from 2018 to 2021, the data demonstrates strong and consistent growth in both operating cash flow and free cash flow, highlighting favorable operational performance and cash management. The marked downturn in 2022 in both metrics is notable and may warrant further investigation to identify原因, such as changes in operational efficiency, investment strategies, or external market conditions impacting cash generation capacity.
Interest Paid, Net of Tax
Roper Technologies Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 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).
2 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate showed a generally increasing trend over the five-year period. Starting from 21.2% in 2018, it slightly decreased to 20.6% in 2019 but then increased each subsequent year, reaching 23.1% by the end of 2022. This upward trend may suggest a gradual rise in the company's tax burden or changes in tax policies impacting the effective rate.
- Cash Paid for Interest, Net of Tax
- The cash paid for interest, net of tax, exhibited an overall increase from 2018 to 2021, rising from approximately $133.2 million in 2018 to $171.8 million in 2021. In 2022, this figure decreased to about $158.8 million, indicating a reduction in interest expenses or possible refinancing activities. The initial trend of rising interest payments might reflect increased debt levels or higher interest rates during that period, while the drop in 2022 could signal improved cost management or changes in capital structure.
Enterprise Value to FCFF Ratio, Current
Roper Technologies Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Apple Inc. | |
| Arista Networks Inc. | |
| Cisco Systems Inc. | |
| Dell Technologies Inc. | |
| Super Micro Computer Inc. | |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2022-12-31).
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
Roper Technologies Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| EV/FCFF, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The analysis of the annual financial data reveals several key trends concerning the enterprise value (EV), free cash flow to the firm (FCFF), and the valuation multiple EV/FCFF over the five-year period from 2018 to 2022.
- Enterprise Value (EV)
- There is a consistent upward trend in the enterprise value from 2018 through 2021, increasing from approximately $37.7 billion to $53.9 billion. This represents significant growth, indicative of expanding market valuation or increased business scale over these years. However, in 2022, a decline is observed, with EV decreasing to about $51.4 billion, suggesting a contraction or market reassessment in that year.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm gradually increased from roughly $1.5 billion in 2018 to nearly $2.0 billion in 2021. This increase implies improved cash-generating capacity and operational performance over this period. In contrast, 2022 shows a marked reduction in FCFF, plunging to about $695 million, which indicates a significant deterioration in cash flow generation during that year.
- EV/FCFF Ratio
- The valuation multiple EV/FCFF, reflecting how the market values the company relative to its cash flow, initially rises steadily from 25.03 in 2018 to a peak of 30.36 in 2020, then slightly decreases to 27.31 in 2021. This pattern indicates increasing market expectations or potentially a lower risk profile during those years. In 2022, the ratio spikes dramatically to 74.01, suggesting that despite the lower cash flow, the enterprise value remains relatively high. This could imply a market overvaluation or specific circumstances affecting cash flow without an immediate reduction in the company's market capitalization.
In summary, the data suggest that from 2018 to 2021, there was steady growth in both valuation and cash flow metrics, reflecting improving operational and market performance. The year 2022 stands out as an anomalous period marked by sharply reduced free cash flow and a decline in enterprise value, coupled with a significant increase in the valuation multiple. This combination may point to underlying challenges impacting cash flow or changes in market sentiment, warranting further investigation.