Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Amphenol Corp., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities showed a generally increasing trend over the five-year period. Starting at approximately 1,502,300 thousand USD in 2019, there was a slight increase to 1,592,000 thousand USD in 2020. The value declined marginally to 1,523,900 thousand USD in 2021, but experienced a significant rise in 2022 to 2,174,600 thousand USD, followed by a continued increase to 2,528,700 thousand USD in 2023. This pattern indicates improved operational cash generation efficiency, particularly strong growth in the latest two years.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm also exhibited an upward trend over the period, starting from 1,305,415 thousand USD in 2019 and increasing steadily despite a small dip in 2021. It rose to 1,411,216 thousand USD in 2020, decreased to 1,256,049 thousand USD in 2021, then increased substantially to 1,892,515 thousand USD in 2022, and further to 2,262,356 thousand USD in 2023. The trajectory implies enhanced liquidity available to capital providers after operational and capital expenditure needs, with notable improvements in the later years.
- Overall Observations
- Both net cash from operating activities and free cash flow to the firm showed resilience and recovery after a slight downturn in 2021. The pronounced increases in 2022 and 2023 suggest strengthening operational performance and capital efficiency. The company appears to be generating increasing amounts of cash flow, which could provide more financial flexibility for investment, debt reduction, or shareholder returns.
Interest Paid, Net of Tax
Amphenol Corp., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2 2023 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 129,200 × 20.70% = 26,744
- Effective Income Tax Rate (EITR)
- The effective income tax rate demonstrated moderate fluctuations over the five-year period. Starting at 22.2% in 2019, it declined to 20.5% in 2020 and remained relatively stable at 20.6% in 2021. In 2022, the rate rose again to 22.3%, before decreasing slightly to 20.7% in 2023. Overall, the EITR oscillated within a narrow range between approximately 20.5% and 22.3%, indicating relatively consistent tax rate levels with minor variations year-over-year.
- Cash Paid During the Year for Interest, Net of Tax
- The cash outflow for interest payments, net of tax, exhibited an overall upward trend throughout the observed timeframe. Starting at $90,715 thousand in 2019, the amount decreased to $83,316 thousand in 2020, which was the lowest point in the period. Subsequently, it increased consistently each year, reaching $88,849 thousand in 2021, then rising further to $96,115 thousand in 2022, and peaking at $102,456 thousand in 2023. This pattern suggests a gradually increasing interest burden, which may reflect a rise in borrowing levels or changes in interest rates affecting the company's financing costs.
Enterprise Value to FCFF Ratio, Current
Amphenol Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 75,093,168) |
| Free cash flow to the firm (FCFF) | 2,262,356) |
| Valuation Ratio | |
| EV/FCFF | 33.19 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Apple Inc. | 29.09 |
| Arista Networks Inc. | 39.45 |
| Cisco Systems Inc. | 26.49 |
| Dell Technologies Inc. | 36.61 |
| Super Micro Computer Inc. | — |
| EV/FCFF, Sector | |
| Technology Hardware & Equipment | 29.46 |
| EV/FCFF, Industry | |
| Information Technology | 61.10 |
Based on: 10-K (reporting date: 2023-12-31).
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
Amphenol Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 65,267,267) | 51,530,855) | 51,525,792) | 41,535,814) | 33,635,356) | |
| Free cash flow to the firm (FCFF)2 | 2,262,356) | 1,892,515) | 1,256,049) | 1,411,216) | 1,305,415) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 28.85 | 27.23 | 41.02 | 29.43 | 25.77 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Apple Inc. | 27.21 | 22.40 | 26.45 | 24.67 | 18.01 | |
| Arista Networks Inc. | 39.01 | 89.98 | 38.47 | 29.00 | — | |
| Cisco Systems Inc. | 10.98 | 13.55 | 15.50 | 10.47 | 12.58 | |
| Dell Technologies Inc. | 34.88 | 6.45 | 9.28 | 8.76 | — | |
| Super Micro Computer Inc. | 21.06 | — | 25.04 | — | 3.79 | |
| EV/FCFF, Sector | ||||||
| Technology Hardware & Equipment | 24.95 | 20.82 | 23.63 | 21.09 | — | |
| EV/FCFF, Industry | ||||||
| Information Technology | 34.07 | 26.35 | 27.35 | 23.73 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 65,267,267 ÷ 2,262,356 = 28.85
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value has exhibited a consistent upward trajectory over the five-year span, increasing from approximately $33.6 billion in 2019 to nearly $65.3 billion in 2023. This reflects a near doubling of the company's valuation, indicating a strong growth trend and possibly enhanced investor confidence and market capitalization.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm shows some fluctuations but an overall increasing trend. After a modest rise from $1.31 billion in 2019 to $1.41 billion in 2020, there was a slight decline in 2021 to $1.26 billion. However, the metric rebounded significantly in the following years, reaching $1.89 billion in 2022 and $2.26 billion in 2023. This pattern suggests improved operational efficiency or better cash generation capacity in the most recent years.
- EV/FCFF Ratio
- The EV/FCFF ratio varied considerably during the period studied. It started at 25.77 in 2019, increased to a peak of 41.02 in 2021, reflecting potentially high valuation relative to free cash flow at that point in time. Subsequently, the ratio declined to 27.23 in 2022 and marginally increased to 28.85 in 2023. The overall pattern indicates that while the enterprise value surged, the firm's free cash flow recovery has adjusted the valuation multiples to more moderate levels after the peak in 2021.