Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Boeing Co., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1, 2 See details »
The analysis of the cash flow data over the five-year period reveals significant fluctuations indicating changes in operational efficiency and capital expenditure impacts.
- Net Cash Provided (Used) by Operating Activities
- There is a substantial improvement from a negative cash flow of -18,410 million USD in 2020 to a positive cash flow of 5,960 million USD in 2023. This trend suggests strengthening operational performance or better working capital management during this period. However, in 2024, the operating cash flow reverses sharply to a negative value of -12,080 million USD, indicating potential operational difficulties or increased cash outflows.
- Free Cash Flow to the Firm (FCFF)
- FCFF follows a trend similar to operating cash flow, starting with a large negative figure of -17,762 million USD in 2020 and improving significantly to a positive 6,442 million USD by 2023. This indicates that the company's ability to generate cash after capital expenditures improved substantially during these years. However, in 2024, FCFF turns negative again at -11,840 million USD, signaling possibly increased capital expenditures or reduced cash generation, which could impact financial flexibility.
Overall, the data shows a period of recovery and improved cash generation from 2020 through 2023, followed by a notable decline in 2024. The negative cash flow figures in 2024 may necessitate further examination of operational and capital expenditure activities for that year.
Interest Paid, Net of Tax
Boeing Co., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2 2024 Calculation
Interest payments, net of amounts capitalized, tax = Interest payments, net of amounts capitalized × EITR
= 2,440 × 3.10% = 76
3 2024 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 149 × 3.10% = 5
- Effective income tax rate (EITR)
- The effective income tax rate exhibited variability over the analyzed period. Starting at 17.5% in 2020, it decreased to 14.7% in 2021, indicating a reduction in tax burden or changes in tax-affecting items. The rate then increased notably to 21% in 2022 and maintained that level in 2023, suggesting either higher taxable income or changes in tax regulations. By 2024, the rate sharply dropped to 3.1%, reflecting a significant decline in tax expense relative to income for that year. This fluctuation indicates an inconsistent tax environment or the impact of one-time tax benefits or adjustments.
- Interest payments, net of amounts capitalized, net of tax
- The net interest payments showed an overall increasing trend with some fluctuations. The amount grew from $1,588 million in 2020 to a peak at $2,203 million in 2021, then slightly declined to $2,032 million in 2022 and further to $1,902 million in 2023. However, in 2024, the figure rose again significantly to $2,364 million, the highest in the five-year span. This pattern suggests variations in debt levels, interest rates, or capital structure strategies.
- Interest capitalized, net of tax
- The interest capitalized amount remained relatively stable from 2020 through 2022, fluctuating narrowly between $65 million and $70 million. In 2023, it increased modestly to $80 million before rising substantially to $144 million in 2024. This upward trend in capitalized interest may reflect increased investment in capital projects or changes in accounting estimation methods related to asset capitalization.
Enterprise Value to FCFF Ratio, Current
Boeing Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 198,621) |
| Free cash flow to the firm (FCFF) | (11,840) |
| Valuation Ratio | |
| EV/FCFF | — |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Caterpillar Inc. | 20.36 |
| Eaton Corp. plc | 38.35 |
| GE Aerospace | 48.26 |
| Honeywell International Inc. | 30.63 |
| Lockheed Martin Corp. | 20.87 |
| RTX Corp. | 38.27 |
| EV/FCFF, Sector | |
| Capital Goods | 53.73 |
| EV/FCFF, Industry | |
| Industrials | 34.57 |
Based on: 10-K (reporting date: 2024-12-31).
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
Boeing Co., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 159,498) | 165,110) | 166,146) | 158,751) | 152,408) | |
| Free cash flow to the firm (FCFF)2 | (11,840) | 6,442) | 4,427) | (1,599) | (17,762) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | — | 25.63 | 37.53 | — | — | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Caterpillar Inc. | 18.32 | 16.08 | 23.54 | 20.50 | 23.83 | |
| Eaton Corp. plc | 31.29 | 38.49 | 33.44 | 38.16 | 21.94 | |
| GE Aerospace | 38.98 | 29.56 | 17.29 | 56.53 | 32.34 | |
| Honeywell International Inc. | 27.10 | 29.13 | 29.82 | 25.22 | 26.49 | |
| Lockheed Martin Corp. | 20.56 | 17.62 | 19.69 | 13.92 | 14.64 | |
| RTX Corp. | 34.48 | 23.86 | 28.45 | 27.29 | 35.26 | |
| EV/FCFF, Sector | ||||||
| Capital Goods | 46.45 | 23.34 | 25.87 | 32.16 | 74.97 | |
| EV/FCFF, Industry | ||||||
| Industrials | 31.37 | 25.93 | 24.30 | 28.80 | 189.49 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 159,498 ÷ -11,840 = —
4 Click competitor name to see calculations.
The financial data over the five-year period exhibits notable fluctuations in key metrics, reflecting varying operational and market conditions.
- Enterprise Value (EV)
- The enterprise value shows a gradual upward trend from 2020 to 2022, increasing from approximately $152.4 billion to $166.1 billion. However, in 2023, there is a slight decline to about $165.1 billion, followed by a more pronounced decrease to roughly $159.5 billion in 2024. This suggests a peak in valuation around 2022 with some reduction thereafter.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm displays significant volatility. The year 2020 shows a notable negative cash flow at about -$17.8 billion, improving drastically by 2021 to near break-even at -$1.6 billion. The following two years, 2022 and 2023, reflect positive cash flows of approximately $4.4 billion and $6.4 billion respectively, indicating operational recovery or improvement in cash-generating ability. However, 2024 sees a sharp reversal with cash flow dropping back to a substantial negative value of around -$11.8 billion, signaling renewed liquidity or operational pressures.
- EV to FCFF Ratio
- The enterprise value to free cash flow to firm ratio is only available for 2022 and 2023. In 2022, this ratio is notably high at 37.53, indicating that the enterprise value is over 37 times the free cash flow, which could imply a high valuation relative to cash generation. In 2023, the ratio decreases to 25.63, suggesting some improvement in cash flow relative to enterprise value, though the ratio remains elevated.
Overall, the data reflects a company experiencing significant variation in free cash flow, influencing valuation multiples and enterprise value trends. The period up to 2022 shows growth and improved cash flow, while the final year indicates potential challenges impacting cash generation and a corresponding contraction in enterprise value.