Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2023-12-31), 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).
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Item | Description | The company |
---|---|---|
FCFF | Free cash flow to the firm is the cash flow available to the AT&T Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | AT&T Inc. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2023-12-31), 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).
2 2023 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 7,370 × 21.30% = 1,570
3 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 874 × 21.30% = 186
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 303,471) |
Free cash flow to the firm (FCFF) | 26,949) |
Valuation Ratio | |
EV/FCFF | 11.26 |
Benchmarks | |
EV/FCFF, Competitors1 | |
T-Mobile US Inc. | 35.71 |
Verizon Communications Inc. | 19.81 |
EV/FCFF, Sector | |
Telecommunication Services | 18.25 |
EV/FCFF, Industry | |
Communication Services | 26.07 |
Based on: 10-K (reporting date: 2023-12-31).
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
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 264,921) | 278,467) | 344,709) | 369,254) | 445,675) | |
Free cash flow to the firm (FCFF)2 | 26,949) | 23,348) | 32,306) | 34,059) | 36,245) | |
Valuation Ratio | ||||||
EV/FCFF3 | 9.83 | 11.93 | 10.67 | 10.84 | 12.30 | |
Benchmarks | ||||||
EV/FCFF, Competitors4 | ||||||
T-Mobile US Inc. | 28.48 | 218.70 | — | — | — | |
Verizon Communications Inc. | 19.38 | 23.20 | — | 13.85 | 16.70 | |
EV/FCFF, Sector | ||||||
Telecommunication Services | 16.10 | 24.13 | 567.15 | 16.80 | 15.66 | |
EV/FCFF, Industry | ||||||
Communication Services | 22.31 | 23.31 | 31.50 | 25.72 | 24.63 |
Based on: 10-K (reporting date: 2023-12-31), 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).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 264,921 ÷ 26,949 = 9.83
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. | AT&T Inc. EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |