Becton, Dickinson & Co., FCFF calculation

USD $ in millions

	12 months ended	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Net income
	Net noncash charges
	Change in operating assets and liabilities
	Net cash provided by operating activities
	Interest paid, net of amounts capitalized, net of tax¹
	Capitalized interest, net of tax²
	Capital expenditures
	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 Becton, Dickinson & Co.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Becton, Dickinson & Co.’s FCFF increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Becton, Dickinson & Co., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Interest paid, net of amounts capitalized, before tax
	Less: Interest paid, net of amounts capitalized, tax²
	Interest paid, net of amounts capitalized, net of tax
	Interest Costs Capitalized, Net of Tax
	Capitalized interest, before tax
	Less: Capitalized interest, tax³
	Capitalized interest, net of tax

2018 Calculations

² Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= hidden × hidden = hidden

³ Capitalized interest, tax = Capitalized interest × EITR
= hidden × hidden = hidden

Becton, Dickinson & Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Intuitive Surgical Inc.
Medtronic PLC
Stryker Corp.
Thermo Fisher Scientific Inc.
UnitedHealth Group Inc.
EV/FCFF, Sector
Health Care Equipment & Services
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.

Becton, Dickinson & Co., historical EV/FCFF calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Intuitive Surgical Inc.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	EV/FCFF, Sector
	Health Care Equipment & Services
	EV/FCFF, Industry
	Health Care

2018 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.	Becton, Dickinson & Co.’s EV/FCFF ratio increased from 2016 to 2017 and from 2017 to 2018.

	Becton, Dickinson & Co.	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

	All companies
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

Becton, Dickinson & Co. (BDX)

Enterprise Value to FCFF (EV/FCFF)