Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Best Buy Co. Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Best Buy Co. Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Best Buy Co. Inc. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Interest Paid, Net of Tax
Best Buy Co. Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
2 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 22 × 19.00% = 4
Enterprise Value to FCFF Ratio, Current
Best Buy Co. Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 16,720) |
| Free cash flow to the firm (FCFF) | 2,533) |
| Valuation Ratio | |
| EV/FCFF | 6.60 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Amazon.com Inc. | 48.02 |
| Home Depot Inc. | 19.65 |
| Lowe’s Cos. Inc. | 22.80 |
| TJX Cos. Inc. | 24.20 |
| EV/FCFF, Sector | |
| Consumer Discretionary Distribution & Retail | 165.62 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 70.46 |
Based on: 10-K (reporting date: 2022-01-29).
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
Best Buy Co. Inc., historical EV/FCFF calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 21,230) | 25,436) | 12,068) | 18,449) | 17,707) | 11,308) | |
| Free cash flow to the firm (FCFF)2 | 2,533) | 4,252) | 1,870) | 1,644) | 1,498) | 2,014) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 8.38 | 5.98 | 6.45 | 11.22 | 11.82 | 5.62 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Amazon.com Inc. | — | — | 78.83 | 74.39 | — | — | |
| Home Depot Inc. | 25.12 | 20.22 | 19.11 | 21.30 | — | — | |
| Lowe’s Cos. Inc. | 19.56 | 14.88 | 20.95 | 18.88 | — | — | |
| TJX Cos. Inc. | 33.03 | 18.30 | 19.08 | 21.16 | — | — | |
| EV/FCFF, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 111.04 | 130.00 | 51.35 | 42.44 | — | — | |
| EV/FCFF, Industry | |||||||
| Consumer Discretionary | 55.70 | 66.77 | 52.40 | 31.02 | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 21,230 ÷ 2,533 = 8.38
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. | Best Buy Co. Inc. EV/FCFF ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |