Enterprise Value to FCFF (EV/FCFF)
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Free Cash Flow to The Firm (FCFF)
Apache Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1, 2 See details »
- Net Cash Provided by Operating Activities
- The net cash generated from operating activities showed significant fluctuations over the five-year period. Beginning at 9,953 million USD in 2011, it declined to 8,504 million USD in 2012. This was followed by a recovery to 9,835 million USD in 2013. However, the upward trend was not sustained, as cash flow again decreased to 8,379 million USD in 2014. A sharp decline occurred in 2015, with net cash provided by operating activities falling drastically to 2,834 million USD. This overall pattern indicates volatility with a notable downward trend towards the end of the period.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm showed a concerning downward trend throughout the period. It started positively at 3,534 million USD in 2011 but turned negative in 2012, with a deficit of 803 million USD. This negative trend persisted with FCFF values of -771 million USD in 2013, -1,254 million USD in 2014, and -1,328 million USD in 2015. The consistently negative FCFF from 2012 onwards suggests increasing challenges in generating cash flows after accounting for capital expenditures and investments, potentially indicating increased spending or operational difficulties.
Interest Paid, Net of Tax
Apache Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × ÷ =
2 2015 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= × =
3 2015 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate shows significant volatility over the five-year period. It increased from 43.36% in 2011 to a peak of 58.97% in 2012, then decreased to 45.73% in 2013. A substantial negative rate of -56.33% occurred in 2014, indicating either a tax credit or loss carrybacks resulting in negative tax expense. In 2015, the tax rate shifted back to a positive 19.38%, representing a normalization relative to prior fluctuation but still much lower than earlier years.
- Interest Paid, Net of Capitalized Interest, Net of Tax
- This metric exhibits a general upward trend from 2011 to 2014. It starts at $88 million in 2011, decreases to $60 million in 2012, then climbs steadily to $104 million in 2013, further increasing sharply to $209 million in 2014. In 2015, it slightly decreases to $198 million, maintaining a high level compared to the earlier years. This pattern suggests an increasing cost of net interest paid over time, peaking in 2014.
- Capitalized Interest, Net of Tax
- Capitalized interest shows an overall upward trend with notable fluctuation. Starting at $149 million in 2011, it slightly decreases to $137 million in 2012, then rises significantly to $203 million in 2013. There is a major jump to $567 million in 2014, indicating a large amount of interest costs being capitalized during that year. In 2015, this figure falls markedly to $183 million, closer to the levels observed before the 2014 spike. This pattern implies variability in capitalization practices or project-related interest expenditures.
Enterprise Value to FCFF Ratio, Current
Apache Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
Based on: 10-K (reporting date: 2015-12-31).
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
Apache Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
3 2015 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a declining trend over the five-year period. It decreased steadily from US$49,628 million at the end of 2011 to US$23,904 million by the end of 2015, representing a significant reduction of approximately 52%. This suggests a substantial decrease in the company's market valuation or perceived economic value during this timeframe.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm exhibits a sharp negative shift after 2011. Initially positive at US$3,534 million in 2011, it turned negative beginning in 2012, with values of -US$803 million, -US$771 million, -US$1,254 million, and -US$1,328 million across the subsequent years. This persistent negative cash flow indicates challenges in generating operating cash flow after capital expenditures, which may imply operational difficulties or significant investments leading to cash outflows.
- EV/FCFF Ratio
- The EV to FCFF ratio is only available for the year 2011, calculated at 14.04. Given that FCFF turned negative in all subsequent years, this ratio was not computed post-2011, reflecting the difficulty in using this valuation multiple during periods of negative free cash flow.
- Summary Insights
- Overall, the financial data depict a company experiencing decreasing enterprise value and a transition from positive to sustained negative free cash flows over the five-year interval. This combination suggests deteriorating financial health or increased investment demands not matched by operating cash inflows. The substantial drop in enterprise value may also reflect market concerns about profitability, future cash flow prospects, or broader industry challenges. The absence of a meaningful EV/FCFF ratio after 2011 further highlights difficulties in valuation metrics when free cash flow is negative.