Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Tesla Inc. (NASDAQ:TSLA)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Tesla Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (loss) attributable to common stockholders 721  (862) (976) (1,961) (675)
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 141  87  (86) (279) (98)
Net noncash charges 4,897  3,529  3,102  2,677  1,343 
Changes in operating assets and liabilities, net of effect of business combinations 184  (349) 58  (497) (694)
Net cash provided by (used in) operating activities 5,943  2,405  2,098  (61) (124)
Cash paid during the period for interest, net of amounts capitalized, net of tax1 332  359  301  125  25 
Capitalized interest, net of tax2 36  24  43  86  30 
Purchases of property and equipment excluding finance leases, net of sales (3,157) (1,327) (2,101) (3,415) (1,281)
Purchase of intangible assets (10) (5) —  —  — 
Acquisitions of property and equipment included in liabilities (1,088) (562) (249) (914) (664)
Free cash flow to the firm (FCFF) 2,056  895  92  (4,178) (2,013)

Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Tesla Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Tesla Inc.’s FCFF increased from 2018 to 2019 and from 2019 to 2020.

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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 25.30% 21.00% 21.00% 31.29% 35.00%
Interest Paid, Net of Tax
Cash paid during the period for interest, net of amounts capitalized, before tax 444  455  381  183  39 
Less: Cash paid during the period for interest, net of amounts capitalized, tax2 112  96  80  57  14 
Cash paid during the period for interest, net of amounts capitalized, net of tax 332  359  301  125  25 
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax 48  31  55  125  47 
Less: Capitalized interest, tax3 12  7  12  39  16 
Capitalized interest, net of tax 36  24  43  86  30 

Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

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2 2020 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
= 444 × 25.30% = 112

3 2020 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 48 × 25.30% = 12

Enterprise Value to FCFF Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 724,870 
Free cash flow to the firm (FCFF) 2,056 
Valuation Ratio
EV/FCFF 352.64
Benchmarks
EV/FCFF, Competitors1
General Motors Co. 16.57
EV/FCFF, Sector
Automobiles & Parts 72.27
EV/FCFF, Industry
Consumer Goods 34.01

Based on: 10-K (filing date: 2021-02-08).

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 821,911  153,799  61,912  67,413  44,929 
Free cash flow to the firm (FCFF)2 2,056  895  92  (4,178) (2,013)
Valuation Ratio
EV/FCFF3 399.85 171.85 671.73 — —
Benchmarks
EV/FCFF, Competitors4
General Motors Co. 16.06 26.36 2,142.17 — —
EV/FCFF, Sector
Automobiles & Parts 79.68 47.30 653.51 — —
EV/FCFF, Industry
Consumer Goods 33.36 26.56 25.20 39.29 39.41

Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

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2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 821,911 ÷ 2,056 = 399.85

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.’s EV/FCFF ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.