Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
AstraZeneca PLC, FCFF calculation
US$ in millions
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the AstraZeneca PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | AstraZeneca PLC FCFF increased from 2012 to 2013 but then slightly decreased from 2013 to 2014. |
Interest Paid, Net of Tax
AstraZeneca PLC, interest paid, net of tax calculation
US$ in millions
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × 11 ÷ 1,246 = 0.88%
2 2014 Calculation
Interest paid, tax = Interest paid × EITR
= 533 × 0.88% = 5
Enterprise Value to FCFF Ratio, Current
AstraZeneca PLC, current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 85,268) |
| Free cash flow to the firm (FCFF) | 5,132) |
| Valuation Ratio | |
| EV/FCFF | 16.61 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| AbbVie Inc. | 13.70 |
| Amgen Inc. | 21.08 |
| Bristol-Myers Squibb Co. | 8.59 |
| Danaher Corp. | 35.83 |
| Eli Lilly & Co. | 644.77 |
| Gilead Sciences Inc. | 12.16 |
| Johnson & Johnson | 18.04 |
| Merck & Co. Inc. | 38.48 |
| Pfizer Inc. | 30.42 |
| Regeneron Pharmaceuticals Inc. | 22.51 |
| Thermo Fisher Scientific Inc. | 29.45 |
| Zoetis Inc. | 41.04 |
Based on: 20-F (reporting date: 2014-12-31).
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
AstraZeneca PLC, historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 85,268) | 81,919) | 63,866) | 55,465) | 67,179) | |
| Free cash flow to the firm (FCFF)2 | 5,132) | 5,934) | 3,127) | 7,241) | 9,438) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 16.61 | 13.81 | 20.43 | 7.66 | 7.12 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
3 2014 Calculation
EV/FCFF = EV ÷ FCFF
= 85,268 ÷ 5,132 = 16.61
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | AstraZeneca PLC EV/FCFF ratio decreased from 2012 to 2013 but then slightly increased from 2013 to 2014. |