Allergan PLC (AGN)

Enterprise Value to FCFF (EV/FCFF)

Difficulty: Intermediate

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
	(Income) loss attributable to noncontrolling interest
	Net noncash charges
	Changes in assets and liabilities, net of effects of acquisitions
	Net cash provided by operating activities
	Cash paid during the year for interest, net of tax¹
	Additions to property, plant and equipment
	Additions to product rights and other intangibles
	Proceeds from sales of property, plant and equipment
	Free cash flow to the firm (FCFF)

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.

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	%	%	%	%	%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax
Less: Cash paid during the year for interest, tax²
Cash paid during the year for interest, net of tax

2017 Calculations

² Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= hidden × hidden % = hidden

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

Selected Financial Data (USD $ in thousands)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Abbott Laboratories
AbbVie Inc.
Amgen Inc.
Biogen Inc.
Bristol-Myers Squibb Co.
Celgene Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
EV/FCFF, Sector
Pharmaceuticals & Biotechnology
EV/FCFF, Industry
Health Care

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.

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
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Abbott Laboratories
	AbbVie Inc.
	Amgen Inc.
	Biogen Inc.
	Bristol-Myers Squibb Co.
	Celgene Corp.
	Eli Lilly & Co.
	Gilead Sciences Inc.
	Johnson & Johnson
	Merck & Co. Inc.
	Pfizer Inc.
	Regeneron Pharmaceuticals Inc.
	EV/FCFF, Sector
	Pharmaceuticals & Biotechnology
	EV/FCFF, Industry
	Health Care

2017 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

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.

	Allergan PLC	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality