Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Super Micro Computer Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
The financial trajectory of cash flows exhibits extreme volatility characterized by alternating cycles of positive and negative inflows and outflows from 2021 through 2026.
- Operating Cash Flow Trends
- Net cash provided by operating activities demonstrates a cyclical pattern of instability. Following a positive result in 2021, the figure shifted to a deficit in 2022, returned to a surplus in 2023, and then experienced a substantial decline to a deficit of approximately 2.49 billion in 2024. This erratic pattern persists through the later periods, culminating in a significant deficit of approximately 6.81 billion by June 30, 2026.
- Free Cash Flow to the Firm (FCFF) Dynamics
- FCFF closely tracks the volatility of operating activities, consistently mirroring the alternating signs of the operating cash flow. FCFF values remain marginally lower than operating cash flow across all periods, indicating a continuous allocation of resources toward capital expenditures. The most pronounced deficits occurred in 2024 and 2026, with the 2026 figure reaching a low of approximately 6.88 billion.
- Magnitude of Variance
- The scale of fluctuations has increased exponentially over the analyzed period. While the variance between 2021 and 2022 was measured in hundreds of millions, the swing between the positive cash flow of 2025 and the deficit of 2026 exceeds 8 billion, suggesting an escalating degree of financial volatility in cash generation and deployment.
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Interest Paid, Net of Tax
Super Micro Computer Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
2 2026 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 109,306 × 19.90% = 21,752
The analysis reveals a substantial and accelerating increase in cash paid for interest, net of tax, over the six-year period ending June 30, 2026. The trajectory indicates a transition from modest interest obligations to a significant financial burden in the final year of the period.
- Interest Expenditure Growth
- Cash outflows for interest experienced a consistent upward trend from 2021 through 2025, growing from $1.8 million to $22.2 million. A dramatic acceleration occurred between June 30, 2025, and June 30, 2026, where payments surged to $87.6 million, representing a nearly fourfold increase in a single fiscal year.
- Effective Income Tax Rate Fluctuations
- The effective income tax rate displayed notable volatility, characterized by a low of 5.2% in 2024 and a peak of 19.9% in 2026. While the rate remained relatively low for the first four years, a steady increase is observed in the final two years of the period.
- Correlation Between Tax Shield and Interest Costs
- The net cost of interest is influenced by the tax shield provided by the effective income tax rate. Despite the tax rate increasing to 19.9% by 2026—which typically lowers the net cost of interest—the net cash paid still escalated sharply. This suggests that the growth in gross interest obligations far exceeded the mitigating effects of the higher tax rate.
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Enterprise Value to FCFF Ratio, Current
Super Micro Computer Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 31,035,902) |
| Free cash flow to the firm (FCFF) | (6,884,331) |
| Valuation Ratio | |
| EV/FCFF | — |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Apple Inc. | 50.13 |
| Arista Networks Inc. | 56.61 |
| Cisco Systems Inc. | 31.98 |
| Dell Technologies Inc. | 39.46 |
| Lumentum Holdings Inc. | 230.37 |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | 50.22 |
| EV/FCFF, Industry | |
| Information Technology | 58.80 |
Based on: 10-K (reporting date: 2026-06-30).
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
Super Micro Computer Inc., historical EV/FCFF calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 29,846,795) | 25,711,878) | 27,527,998) | 13,351,606) | 3,957,189) | 1,672,177) | |
| Free cash flow to the firm (FCFF)2 | (6,884,331) | 1,554,512) | (2,595,069) | 634,072) | (481,353) | 66,774) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | — | 16.54 | — | 21.06 | — | 25.04 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Apple Inc. | — | 40.91 | 31.36 | 27.21 | 22.40 | 26.45 | |
| Arista Networks Inc. | — | 39.60 | 33.39 | 39.01 | 89.98 | 38.47 | |
| Cisco Systems Inc. | 31.96 | 19.06 | 19.55 | 10.98 | 13.55 | 15.50 | |
| Dell Technologies Inc. | 12.53 | 29.51 | 13.99 | 34.88 | 6.45 | 9.28 | |
| Lumentum Holdings Inc. | 239.89 | — | — | 72.26 | 14.52 | 8.11 | |
| EV/FCFF, Sector | |||||||
| Technology Hardware & Equipment | — | 37.81 | 30.41 | 24.97 | 20.80 | 23.54 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 43.70 | 39.04 | 33.99 | 26.47 | 27.37 | |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
3 2026 Calculation
EV/FCFF = EV ÷ FCFF
= 29,846,795 ÷ -6,884,331 = —
4 Click competitor name to see calculations.
The financial trajectory between 2021 and 2026 is characterized by a substantial expansion in enterprise valuation coupled with extreme volatility in free cash flow to the firm. While the overall valuation of the entity has increased significantly, the inconsistent nature of cash flow generation complicates the valuation multiple analysis.
- Enterprise Value (EV) Trends
- A period of rapid growth is observed from 2021 to 2024, with the enterprise value rising from 1.67 billion to a peak of 27.53 billion. Following this peak, the valuation remains relatively elevated, concluding at 29.85 billion by 2026, indicating a permanent shift in the scale of the company's market valuation.
- Free Cash Flow to the Firm (FCFF) Volatility
- The FCFF exhibits a cyclical pattern of alternating signs. Positive cash flows were recorded in 2021, 2023, and 2025, while significant deficits occurred in 2022, 2024, and 2026. The magnitude of these fluctuations has intensified over time, culminating in a substantial cash outflow of 6.88 billion in 2026.
- EV/FCFF Ratio Analysis
- The EV/FCFF ratio is only calculable during years of positive FCFF. In these specific instances, a consistent downward trend is observed, with the ratio decreasing from 25.04 in 2021 to 21.06 in 2023, and further to 16.54 in 2025. This suggests that during periods of positive cash generation, the company's ability to produce free cash flow has improved relative to its total enterprise value.
The divergence between the steadily increasing enterprise value and the erratic free cash flow suggests a valuation driven by growth expectations or non-cash performance metrics, as the actual cash returns to the firm remain unstable and frequently negative.
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