Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Abbott Laboratories, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings 7,071  4,495  3,687  2,368  477 
Net noncash charges 4,233  4,298  3,780  4,080  3,178 
(Increase) decrease in operating capital (771) (892) (1,331) (148) 1,915 
Net cash from operating activities 10,533  7,901  6,136  6,300  5,570 
Interest paid, net of tax1 468  497  598  739  746 
Acquisitions of property and equipment (1,885) (2,177) (1,638) (1,394) (1,135)
Free cash flow to the firm (FCFF) 9,116  6,221  5,096  5,645  5,181 

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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Abbott Laboratories suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Abbott Laboratories FCFF increased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

Abbott Laboratories, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 13.90% 9.50% 11.70% 12.50% 18.70%
Interest Paid, Net of Tax
Interest paid, before tax 544  549  677  845  917 
Less: Interest paid, tax2 76  52  79  106  171 
Interest paid, net of tax 468  497  598  739  746 

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).

1 See details »

2 2021 Calculation
Interest paid, tax = Interest paid × EITR
= 544 × 13.90% = 76


Enterprise Value to FCFF Ratio, Current

Abbott Laboratories, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 203,249 
Free cash flow to the firm (FCFF) 9,116 
Valuation Ratio
EV/FCFF 22.29
Benchmarks
EV/FCFF, Competitors1
Bristol-Myers Squibb Co. 11.43
Cigna Corp. 16.60
CVS Health Corp. 10.42
Danaher Corp. 32.12
Elevance Health Inc. 13.67
Intuitive Surgical Inc. 46.64
Medtronic PLC 21.58
UnitedHealth Group Inc. 24.97
EV/FCFF, Sector
Health Care Equipment & Services 19.05
EV/FCFF, Industry
Health Care 17.22

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

Abbott Laboratories, 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)1 213,980  229,787  168,424  149,398  123,592 
Free cash flow to the firm (FCFF)2 9,116  6,221  5,096  5,645  5,181 
Valuation Ratio
EV/FCFF3 23.47 36.94 33.05 26.46 23.86
Benchmarks
EV/FCFF, Competitors4
Bristol-Myers Squibb Co. 10.52 11.63 23.39 15.74 24.15
Cigna Corp. 14.21 9.17 10.32 29.92 12.68
CVS Health Corp. 10.30 9.42 12.30 17.89 14.20
Danaher Corp. 28.25 30.66 37.11 25.21 25.94
Elevance Health Inc. 12.74 6.04 12.73 24.58 13.91
Intuitive Surgical Inc. 56.47 76.70 54.58 57.79 47.07
Medtronic PLC 33.84 21.43 22.07 27.88 21.24
UnitedHealth Group Inc. 22.21 15.82 17.51 18.63 18.98
EV/FCFF, Sector
Health Care Equipment & Services 18.42 15.79 18.90 22.26 19.81
EV/FCFF, Industry
Health Care 16.27 18.19 18.56 19.03 18.52

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).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 213,980 ÷ 9,116 = 23.47

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. Abbott Laboratories EV/FCFF ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.