Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Boeing Co. (NYSE:BA)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Boeing Co., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings (loss) related to parent (636) 10,460  8,197  4,895  5,176 
Net losses related to noncontrolling interests (41) (21) (2) (1) (3)
Net noncash charges 2,860  2,599  2,654  2,560  2,395 
Changes in assets and liabilities (4,629) 2,284  2,495  3,045  1,795 
Net cash provided (used) by operating activities (2,446) 15,322  13,344  10,499  9,363 
Interest payments, net of tax1 274  549  375  460  353 
Interest capitalized, net of tax2 23  72  78  149  114 
Property, plant and equipment additions (1,834) (1,722) (1,739) (2,613) (2,450)
Property, plant and equipment reductions 334  120  92  38  42 
Purchase of distribution rights (127) (69) (131) —  — 
Free cash flow to the firm (FCFF) (3,775) 14,272  12,019  8,533  7,422 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Boeing Co.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Boeing Co.’s FCFF increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Interest Paid, Net of Tax

Boeing Co., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 71.80% 10.90% 28.90% 12.10% 27.70%
Interest Paid, Net of Tax
Interest payments, before tax 973  616  527  523  488 
Less: Interest payments, tax2 699  67  152  63  135 
Interest payments, net of tax 274  549  375  460  353 
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 83  81  110  170  158 
Less: Interest capitalized, tax3 60  9  32  21  44 
Interest capitalized, net of tax 23  72  78  149  114 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

1 See details »

2 2019 Calculation
Interest payments, tax = Interest payments × EITR
= 973 × 71.80% = 699

3 2019 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 83 × 71.80% = 60

Enterprise Value to FCFF Ratio, Current

Boeing Co., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 139,810 
Free cash flow to the firm (FCFF) (3,775)
Valuation Ratio
EV/FCFF —
Benchmarks
EV/FCFF, Competitors1
General Dynamics Corp. 23.22
Lockheed Martin Corp. 18.21
Northrop Grumman Corp. 17.94
Raytheon Technologies Corp. 19.04
EV/FCFF, Sector
Aerospace & Defense 30.39
EV/FCFF, Industry
Industrials 25.92

Based on: 10-K (filing date: 2020-01-31).

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

Boeing Co., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 196,823  234,122  203,505  100,313  75,063 
Free cash flow to the firm (FCFF)2 (3,775) 14,272  12,019  8,533  7,422 
Valuation Ratio
EV/FCFF3 — 16.40 16.93 11.76 10.11
Benchmarks
EV/FCFF, Competitors4
General Dynamics Corp. 27.60 22.64 17.96 30.53 20.94
Lockheed Martin Corp. 21.21 41.00 18.99 19.08 17.92
Northrop Grumman Corp. 21.80 20.12 33.26 21.05 20.20
Raytheon Technologies Corp. 21.94 27.92 27.84 19.13 14.87
EV/FCFF, Sector
Aerospace & Defense 37.51 21.75 20.45 17.48 14.89
EV/FCFF, Industry
Industrials 24.83 22.98 24.59 23.62 20.18

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 196,823 ÷ -3,775 = —

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. Boeing Co.’s EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.