Stock Analysis on Net
Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Tesla Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) attributable to common stockholders 5,519  721  (862) (976) (1,961)
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 125  141  87  (86) (279)
Net noncash charges 5,335  4,897  3,529  3,102  2,677 
Changes in operating assets and liabilities 518  184  (349) 58  (497)
Net cash provided by (used in) operating activities 11,497  5,943  2,405  2,098  (61)
Cash paid during the period for interest, net of amounts capitalized, net of tax1 237  332  359  301  125 
Capitalized interest, net of tax2 47  36  24  43  86 
Purchases of property and equipment excluding finance leases, net of sales (6,482) (3,157) (1,327) (2,101) (3,415)
Purchase of intangible assets —  (10) (5) —  — 
Acquisitions of property and equipment included in liabilities (2,251) (1,088) (562) (249) (914)
Free cash flow to the firm (FCFF) 3,048  2,056  895  92  (4,178)

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 Tesla Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Tesla Inc. FCFF increased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

Tesla Inc., interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 11.02% 25.30% 21.00% 21.00% 31.29%
Interest Paid, Net of Tax
Cash paid during the period for interest, net of amounts capitalized, before tax 266  444  455  381  183 
Less: Cash paid during the period for interest, net of amounts capitalized, tax2 29  112  96  80  57 
Cash paid during the period for interest, net of amounts capitalized, net of tax 237  332  359  301  125 
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax 53  48  31  55  125 
Less: Capitalized interest, tax3 6  12  7  12  39 
Capitalized interest, net of tax 47  36  24  43  86 

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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2 2021 Calculation
Cash paid during the period for interest, net of amounts capitalized, tax = Cash paid during the period for interest, net of amounts capitalized × EITR
= 266 × 11.02% = 29

3 2021 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 53 × 11.02% = 6

Enterprise Value to FCFF Ratio, Current

Tesla Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 821,106 
Free cash flow to the firm (FCFF) 3,048 
Valuation Ratio
EV/FCFF 269.41
Benchmarks
EV/FCFF, Competitors1
Ford Motor Co. 7.62
General Motors Co. 23.26
EV/FCFF, Sector
Automobiles & Components 45.61
EV/FCFF, Industry
Consumer Discretionary 53.66

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.

Enterprise Value to FCFF Ratio, Historical

Tesla Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 927,706  821,920  153,799  61,921  67,413 
Free cash flow to the firm (FCFF)2 3,048  2,056  895  92  (4,178)
Valuation Ratio
EV/FCFF3 304.38 399.86 171.85 671.83 —
Benchmarks
EV/FCFF, Competitors4
Ford Motor Co. 9.64 5.16 7.12 8.96 7.07
General Motors Co. 28.65 16.06 26.36 2,142.17 —
EV/FCFF, Sector
Automobiles & Components 52.71 32.24 18.00 25.80 215.42
EV/FCFF, Industry
Consumer Discretionary 68.32 50.26 31.63 29.70 48.52

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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2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 927,706 ÷ 3,048 = 304.38

4 Click competitor name to see calculations.

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