Free Cash Flow to The Firm (FCFF)

Allergan PLC, FCFF calculation

USD $ in thousands

 
12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income (loss) attributable to shareholders (4,125,500) 14,973,400  3,915,200  (1,630,500) (750,400)
(Income) loss attributable to noncontrolling interest 6,600  6,100  4,200  300  (700)
Net noncash charges 9,058,400  (12,827,700) 1,882,800  4,305,100  2,128,200 
Changes in assets and liabilities, net of effects of acquisitions 933,900  (726,500) (1,272,200) (431,900) (163,600)
Net cash provided by operating activities 5,873,400  1,425,300  4,530,000  2,243,000  1,213,500 
Cash paid during the year for interest, net of tax1 409,695  421,707  446,365  301,594  266,591 
Additions to property, plant and equipment (349,900) (331,400) (454,900) (238,600) (177,900)
Additions to product rights and other intangibles (614,300) (2,000) (154,700) (36,100) (130,000)
Proceeds from sales of property, plant and equipment 7,100  33,300  140,100  13,700  7,100 
Free cash flow to the firm (FCFF) 5,325,995  1,546,907  4,506,865  2,283,594  1,179,291 
Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Allergan PLC's suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Allergan PLC's FCFF declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Top


Interest Paid, Net of Tax

Allergan PLC, interest paid, net of tax calculation

USD $ in thousands

 
12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Effective Income Tax Rate (EITR)
EITR1 64.20% 67.00% 35.30% 4.80% -17.70%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax 1,144,400  1,277,900  689,900  316,800  226,500 
Less: Cash paid during the year for interest, tax2 734,705  856,193  243,535  15,206  (40,091)
Cash paid during the year for interest, net of tax 409,695  421,707  446,365  301,594  266,591 

2017 Calculations

2 Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 1,144,400 × 64.20% = 734,705

Top


Enterprise Value to FCFF Ratio, Current

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

 
Selected Financial Data (USD $ in thousands)
Enterprise value (EV) 88,636,822 
Free cash flow to the firm (FCFF) 5,325,995 
Ratio
EV/FCFF 16.64
Benchmarks
EV/FCFF, Competitors
Abbott Laboratories 28.18
AbbVie Inc. 17.76
Amgen Inc. 11.43
Biogen Inc. 26.39
Bristol-Myers Squibb Co. 22.11
Celgene Corp. 12.35
Eli Lilly & Co. 22.59
Gilead Sciences Inc. 9.32
Johnson & Johnson 19.84
Merck & Co. Inc. 38.39
Pfizer Inc. 14.31
Regeneron Pharmaceuticals Inc. 37.26
EV/FCFF, Sector
Pharmaceuticals & Biotechnology 17.91
EV/FCFF, Industry
Health Care 18.74

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.

Top


Enterprise Value to FCFF Ratio, Historical

Allergan PLC, 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 thousands)
Enterprise value (EV)1 82,757,462  106,734,788  164,192,969  90,912,752  47,920,442 
Free cash flow to the firm (FCFF)2 5,325,995  1,546,907  4,506,865  2,283,594  1,179,291 
Ratio
EV/FCFF3 15.54 69.00 36.43 39.81 40.63
Benchmarks
EV/FCFF, Competitors
Abbott Laboratories 26.99 36.35 30.00 27.54 25.21
AbbVie Inc. 21.20 17.64 14.93 32.10 14.33
Amgen Inc. 11.16 11.23 11.51 13.76 16.49
Biogen Inc. 26.28 14.61 20.11 34.00 32.88
Bristol-Myers Squibb Co. 24.77 51.76 87.88 35.51 28.83
Celgene Corp. 14.13 23.00 35.79 34.75 30.18
Eli Lilly & Co. 19.87 23.22 43.88 24.69 12.89
Gilead Sciences Inc. 9.72 6.44 6.51 12.63 43.41
Johnson & Johnson 20.44 19.65 16.62 17.44 17.27
Merck & Co. Inc. 33.91 20.51 13.16 24.11 16.28
Pfizer Inc. 13.91 14.94 14.19 12.81 11.91
Regeneron Pharmaceuticals Inc. 32.57 38.99 57.44 97.24 73.58
EV/FCFF, Sector
Pharmaceuticals & Biotechnology 18.02 17.50 16.56 20.04 18.65
EV/FCFF, Industry
Health Care 18.52 18.16 16.97 19.42 17.84

2017 Calculations

3 EV/FCFF = EV ÷ FCFF
= 82,757,462 ÷ 5,325,995 = 15.54

Ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Allergan PLC's EV/FCFF ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

Top