Allergan PLC, FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income (loss) attributable to shareholders	(5,271,000)	(5,096,400)	(4,125,500)	14,973,400)	3,915,200)
Income attributable to noncontrolling interest	5,900)	10,200)	6,600)	6,100)	4,200)
Net noncash charges	10,400,900)	12,018,400)	9,058,400)	(12,827,700)	1,882,800)
Changes in assets and liabilities, net of effects of acquisitions	2,102,900)	(1,292,100)	933,900)	(726,500)	(1,272,200)
Net cash provided by operating activities	7,238,700)	5,640,100)	5,873,400)	1,425,300)	4,530,000)
Cash paid during the year for interest, net of tax¹	686,788)	718,481)	720,972)	421,707)	446,365)
Additions to property, plant and equipment	(375,200)	(253,500)	(349,900)	(331,400)	(454,900)
Additions to product rights and other intangibles	(58,300)	—)	(614,300)	(2,000)	(154,700)
Proceeds from sales of property, plant and equipment	23,700)	30,400)	7,100)	33,300)	140,100)
Free cash flow to the firm (FCFF)	7,515,688)	6,135,481)	5,637,272)	1,546,907)	4,506,865)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Allergan PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Allergan PLC FCFF increased from 2017 to 2018 and from 2018 to 2019.

Allergan PLC, interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR¹	12.50%	25.60%	37.00%	67.00%	35.30%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	784,900)	965,700)	1,144,400)	1,277,900)	689,900)
Less: Cash paid during the year for interest, tax²	98,113)	247,219)	423,428)	856,193)	243,535)
Cash paid during the year for interest, net of tax	686,788)	718,481)	720,972)	421,707)	446,365)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² 2019 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 784,900 × 12.50% = 98,113

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Allergan PLC, current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	80,406,121)
Free cash flow to the firm (FCFF)	7,515,688)
Valuation Ratio
EV/FCFF	10.70
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	13.70
Amgen Inc.	21.08
Bristol-Myers Squibb Co.	8.59
Danaher Corp.	35.83
Eli Lilly & Co.	644.77
Gilead Sciences Inc.	12.16
Johnson & Johnson	18.04
Merck & Co. Inc.	38.48
Pfizer Inc.	30.42
Regeneron Pharmaceuticals Inc.	22.51
Thermo Fisher Scientific Inc.	29.45
Zoetis Inc.	41.04
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	28.81
EV/FCFF, Industry
Health Care	26.03

Based on: 10-K (reporting date: 2019-12-31).

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.

Allergan PLC, historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	81,899,299)	68,163,995)	82,757,462)	106,734,788)	164,192,969)
Free cash flow to the firm (FCFF)²	7,515,688)	6,135,481)	5,637,272)	1,546,907)	4,506,865)
Valuation Ratio
EV/FCFF³	10.90	11.11	14.68	69.00	36.43
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	11.60	—	—	—	—
Amgen Inc.	16.05	—	—	—	—
Bristol-Myers Squibb Co.	23.39	—	—	—	—
Danaher Corp.	37.11	—	—	—	—
Eli Lilly & Co.	36.26	—	—	—	—
Gilead Sciences Inc.	9.78	—	—	—	—
Johnson & Johnson	19.31	—	—	—	—
Merck & Co. Inc.	20.46	—	—	—	—
Pfizer Inc.	19.44	—	—	—	—
Regeneron Pharmaceuticals Inc.	19.54	—	—	—	—
Thermo Fisher Scientific Inc.	28.88	—	—	—	—
Zoetis Inc.	47.27	—	—	—	—
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	19.59	—	—	—	—
EV/FCFF, Industry
Health Care	18.44	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² See details »

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 81,899,299 ÷ 7,515,688 = 10.90

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Allergan PLC EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.

Allergan PLC (NYSE:AGN)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical