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

Abbott Laboratories (NYSE:ABT)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Abbott Laboratories, FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings 3,687  2,368  477  1,400  4,423 
Net noncash charges 3,780  4,080  3,178  3,316  (1,301)
(Increase) decrease in operating capital (1,331) (148) 1,915  (1,513) (156)
Net cash from operating activities 6,136  6,300  5,570  3,203  2,966 
Interest paid, net of tax1 598  739  746  136  136 
Acquisitions of property and equipment (1,638) (1,394) (1,135) (1,121) (1,110)
Free cash flow to the firm (FCFF) 5,096  5,645  5,181  2,218  1,992 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Abbott Laboratories’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Abbott Laboratories’s FCFF increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Interest Paid, Net of Tax

Abbott Laboratories, interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 11.70% 12.50% 18.70% 24.80% 18.10%
Interest Paid, Net of Tax
Interest paid, before tax 677  845  917  181  166 
Less: Interest paid, tax2 79  106  171  45  30 
Interest paid, net of tax 598  739  746  136  136 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 See details »

2 2019 Calculation
Interest paid, tax = Interest paid × EITR
= 677 × 11.70% = 79


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 202,809 
Free cash flow to the firm (FCFF) 5,096 
Valuation Ratio
EV/FCFF 39.80
Benchmarks
EV/FCFF, Competitors1
AbbVie Inc. 14.62
Amgen Inc. 15.47
Biogen Inc. 5.80
Bristol-Myers Squibb Co. 23.07
Eli Lilly & Co. 37.19
Gilead Sciences Inc. 8.24
Illumina Inc. 50.01
Johnson & Johnson 18.64
Merck & Co. Inc. 20.44
Pfizer Inc. 21.35
Regeneron Pharmaceuticals Inc. 25.59
Vertex Pharmaceuticals Inc. 34.71
Zoetis Inc. 51.98
EV/FCFF, Sector
Pharmaceuticals & Biotechnology 19.70
EV/FCFF, Industry
Health Care 22.55

Based on: 10-K (filing date: 2020-02-21).

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 LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 168,424  149,398  123,592  80,634  59,755 
Free cash flow to the firm (FCFF)2 5,096  5,645  5,181  2,218  1,992 
Valuation Ratio
EV/FCFF3 33.05 26.46 23.86 36.35 30.00
Benchmarks
EV/FCFF, Competitors4
AbbVie Inc. 11.60 10.87 20.93 17.64 14.93
Amgen Inc. 16.05 10.31 10.37 11.32 11.85
Biogen Inc. 9.02 12.03 25.64 14.61 20.11
Bristol-Myers Squibb Co. 23.39 15.74 24.15 51.76 87.88
Eli Lilly & Co. 36.26 29.29 19.33 23.65 46.12
Gilead Sciences Inc. 9.78 9.80 9.38 6.44 6.51
Illumina Inc. 48.98 49.08 55.92 55.80 44.17
Johnson & Johnson 19.34 19.27 19.67 19.65 16.62
Merck & Co. Inc. 20.46 25.27 31.98 20.51 13.16
Pfizer Inc. 20.14 17.76 15.13 14.94 14.19
Regeneron Pharmaceuticals Inc. 19.54 23.09 32.47 38.99 57.44
Vertex Pharmaceuticals Inc. 38.30 36.49 62.48 89.21
Zoetis Inc. 47.27 28.40 33.69 48.79 48.13
EV/FCFF, Sector
Pharmaceuticals & Biotechnology 19.21 17.52 19.22 17.11 15.77
EV/FCFF, Industry
Health Care 21.08 19.97 20.63 18.78 17.23

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 168,424 ÷ 5,096 = 33.05

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’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.