Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
Elevance Health Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Elevance Health Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
Elevance Health Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Operating Cash Flow Trend
- The net cash provided by operating activities demonstrates a downward trend over the five-year period. Starting from a peak of 10,688 million US dollars at the end of 2020, the figure declines each year, falling to 8,364 million in 2021, stabilizing slightly around 8,399 million in 2022, then decreasing again to 8,061 million in 2023, and finally dropping significantly to 5,808 million in 2024. This suggests a consistent reduction in cash generated from core business operations.
- Free Cash Flow to the Firm (FCFF) Trend
- Similar to operating cash flow, Free Cash Flow to the Firm shows a comparable pattern of decline. The value decreases from 10,249 million US dollars in 2020 to 7,909 million in 2021. It remains relatively stable between 2021 and 2022 at around 7,927 million, before dropping to 7,567 million in 2023 and further declining to 5,487 million in 2024. This steady reduction may indicate increasing capital expenditures or other cash outflows impacting the free cash available to equity and debt holders.
- Comparative Analysis
- The parallel downward trajectories of both net operating cash flow and FCFF suggest a coherent overall reduction in liquidity generated and retained by the company. The narrower gap between operating cash flow and FCFF implies relatively stable capital expenditure levels or other adjustments impacting free cash flow. However, the significant decline in the most recent year could point to intensified operational or investment challenges.
- Overall Insights
- The data reflects a decreasing ability to generate cash internally, which could affect the company’s capacity to fund operations, invest in growth, or return value to shareholders without resorting to external financing. The trends warrant further investigation into underlying causes such as revenue fluctuations, cost management, or changes in working capital and capital expenditure strategies.
Interest Paid, Net of Tax
Elevance Health Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= × =
- Effective Income Tax Rate (EITR)
-
The effective income tax rate shows a generally declining trend from 26.7% in 2020 to a low of 22.3% in 2023, followed by a slight increase to 24.5% in 2024. This overall reduction through 2023 suggests improved tax efficiency or favorable changes in tax regulations. However, the uptick in 2024 may indicate a reversal or adjustment in these factors.
- Interest Paid, Net of Tax (US$ in millions)
-
Interest paid, net of tax, exhibits a consistent upward trend across the five years, increasing from $582 million in 2020 to $935 million in 2024. This steady rise could reflect higher debt levels, increased borrowing costs, or both. The most significant increment appears between 2022 and 2024, pointing to accelerated interest expenses in the more recent periods.
Enterprise Value to FCFF Ratio, Current
Elevance Health Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/FCFF, Sector | |
| Health Care Equipment & Services | |
| EV/FCFF, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2024-12-31).
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
Elevance Health Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/FCFF, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- There is a notable increase in the enterprise value from 2020 to 2023, rising from approximately 61.9 billion US dollars to over 107.3 billion US dollars. However, in 2024, the enterprise value experiences a significant decline to around 85.4 billion US dollars, which is a considerable drop from the prior year but still above the 2020 level.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow shows a declining trend over the five-year period. Beginning at approximately 10.2 billion US dollars in 2020, it decreases sharply by 2021 and remains relatively flat through 2022 and 2023, with values between 7.5 and 7.9 billion US dollars. In 2024, free cash flow decreases further to approximately 5.5 billion US dollars, marking the lowest level in the observed timeframe.
- EV/FCFF Ratio
- The EV to FCFF ratio demonstrates a consistent upward trend across the years. Starting from a moderate multiple of 6.04 in 2020, the ratio more than doubles in 2021, reaching 12.74. It continues to increase steadily to 15.57 in 2024. This rising multiple suggests increasing market valuation relative to the company’s free cash flow, potentially indicating expectations of growth or varying risk perceptions despite declining free cash flow.
- Overall Insights
- The data reveals a scenario where the enterprise value initially surged alongside a drop in free cash flow, which then stabilizes before decreasing further in the latest year. The rising EV/FCFF ratio indicates growing market optimism or valuation multiples despite the contraction in free cash flow. The sharp fall in enterprise value in 2024 might reflect market adjustments or increased risk concerns, aligning with the continued decline in free cash flow. This divergence between valuation and cash flow performance suggests investors may be pricing in future opportunities or factors not directly reflected in the current cash flows.