.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
eBay Inc., FCFF calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income (loss) | |||||
| | Net noncash charges | |||||
| | Changes in assets and liabilities, net of acquisition effects | |||||
| | Net cash provided by operating activities | |||||
| | Cash paid for interest, net of tax1 | |||||
| | Purchases of property and equipment | |||||
| | Free cash flow to the firm (FCFF) |
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the eBay Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | eBay Inc.'s FCFF increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level. |
Interest Paid, Net of Tax
eBay Inc., interest paid, net of tax calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| Effective Income Tax Rate (EITR) | ||||||
| | EITR1 | % | % | % | % | % |
| Interest Paid, Net of Tax | ||||||
| | Cash paid for interest, before tax | |||||
| | Less: Cash paid for interest, tax2 | |||||
| | Cash paid for interest, net of tax | |||||
2017 Calculations
2 Cash paid for interest, tax = Cash paid for interest × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
eBay Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Amazon.com Inc. | |
| Costco Wholesale Corp. | |
| Home Depot Inc. | |
| Lowe's Cos. Inc. | |
| Netflix Inc. | |
| Target Corp. | |
| TJX Cos. Inc. | |
| Walmart Inc. | |
| EV/FCFF, Sector | |
| General Retailers | |
| EV/FCFF, Industry | |
| Consumer Services | |
If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
eBay Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Amazon.com Inc. | ||||||
| Costco Wholesale Corp. | ||||||
| Home Depot Inc. | ||||||
| Lowe's Cos. Inc. | ||||||
| Netflix Inc. | ||||||
| Target Corp. | ||||||
| TJX Cos. Inc. | ||||||
| Walmart Inc. | ||||||
| EV/FCFF, Sector | ||||||
| General Retailers | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Services | ||||||
2017 Calculations
3 EV/FCFF = EV ÷ FCFF
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | eBay Inc.'s EV/FCFF ratio increased from 2015 to 2016 and from 2016 to 2017. |
