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: 2025-12-31), 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).
1, 2 See details »
The financial information reveals significant fluctuations in both net cash provided by operating activities and free cash flow to the firm over the five-year period. A notable divergence exists between operating cash flow and FCFF, suggesting substantial differences in how operating cash is utilized after accounting for investments in operating capacity.
- Net Cash from Operations
- Net cash provided by operating activities experienced considerable volatility. It began with a substantial outflow in 2021, followed by positive inflows in 2022 and 2023. However, 2024 witnessed a dramatic outflow, significantly larger in magnitude than the 2021 outflow. A return to positive cash flow is observed in 2025, though at a considerably lower level than in 2023.
- Free Cash Flow to the Firm (FCFF)
- FCFF mirrored the trend in operating cash flow, exhibiting substantial swings. A negative value was recorded in 2021, shifting to positive values in 2022 and 2023. Similar to operating cash flow, 2024 showed a large negative FCFF, followed by a substantial reduction in the negative value in 2025, though remaining positive only marginally.
The correlation between net cash from operations and FCFF is strong, indicating that changes in operating cash flow are the primary driver of changes in FCFF. The large negative values in 2024 for both metrics warrant further investigation to understand the underlying causes, such as significant capital expenditures, debt repayments, or other cash outflows. The relatively low positive FCFF in 2025, despite positive operating cash flow, suggests continued substantial cash commitments.
- Trend Analysis
- The period demonstrates a lack of consistent positive free cash flow generation. While 2022 and 2023 represent periods of positive FCFF, these are interspersed with significant negative values in 2021 and 2024, and a minimal positive value in 2025. This pattern suggests an unstable cash flow profile, potentially impacting the firm’s ability to fund future growth, dividends, or debt reduction without external financing.
The substantial fluctuations observed necessitate a deeper dive into the components of operating cash flow and the specific uses of cash to understand the drivers behind these trends and assess the sustainability of future cash flow generation.
Interest Paid, Net of Tax
Boeing Co., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
2 2025 Calculation
Interest payments, net of amounts capitalized, tax = Interest payments, net of amounts capitalized × EITR
= 2,630 × 15.10% = 397
3 2025 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 185 × 15.10% = 28
The period under review demonstrates fluctuations in interest expense, net of tax, alongside changes in the effective income tax rate and the amount of interest capitalized. Interest payments, net of tax, generally decreased from 2021 to 2023, before increasing in 2024 and decreasing slightly in 2025. The effective income tax rate exhibited significant volatility, while interest capitalization consistently increased throughout the observed timeframe.
- Interest Payments, Net of Tax
- Interest payments, net of tax, began at US$2,203 million in 2021. A decline was observed in subsequent years, reaching US$1,902 million in 2023. This represents a cumulative decrease of approximately 13.6% over the three-year period. However, 2024 saw an increase to US$2,364 million, exceeding the 2021 level. This increase was partially offset by a slight decrease to US$2,233 million in 2025. The fluctuations suggest potential changes in debt levels, interest rates, or debt refinancing activities.
- Effective Income Tax Rate (EITR)
- The effective income tax rate experienced substantial variation. It rose from 14.70% in 2021 to 21.00% in 2022 and remained at that level in 2023. A significant drop occurred in 2024, falling to 3.10%, before rebounding to 15.10% in 2025. These changes in the EITR likely reflect alterations in the tax jurisdictions where profits are earned, changes in tax laws, or the realization of tax benefits or liabilities. The low rate in 2024 warrants further investigation to understand the underlying drivers.
- Interest Capitalized, Net of Tax
- Interest capitalized, net of tax, showed a consistent upward trend throughout the period. Starting at US$65 million in 2021, it increased to US$80 million in 2023, and continued to rise to US$144 million in 2024 and US$157 million in 2025. This indicates a growing level of qualifying assets under construction or development where borrowing costs are being added to the asset's cost. The consistent increase suggests ongoing investment in long-term projects.
The interplay between these three items suggests a complex financial landscape. The increase in interest capitalization alongside fluctuating net interest payments and the EITR requires further analysis to determine the overall impact on profitability and financial position.
Enterprise Value to FCFF Ratio, Current
Boeing Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 215,570) |
| Free cash flow to the firm (FCFF) | 586) |
| Valuation Ratio | |
| EV/FCFF | 367.91 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Caterpillar Inc. | 33.95 |
| Eaton Corp. plc | 39.41 |
| GE Aerospace | 42.33 |
| Honeywell International Inc. | 30.58 |
| Lockheed Martin Corp. | 20.77 |
| RTX Corp. | 49.76 |
| EV/FCFF, Sector | |
| Capital Goods | 66.99 |
| EV/FCFF, Industry | |
| Industrials | 40.88 |
Based on: 10-K (reporting date: 2025-12-31).
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 208,258) | 159,498) | 165,110) | 166,146) | 158,751) | |
| Free cash flow to the firm (FCFF)2 | 586) | (11,840) | 6,442) | 4,427) | (1,599) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 355.43 | — | 25.63 | 37.53 | — | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Caterpillar Inc. | — | 18.32 | 16.08 | 23.54 | 20.50 | |
| Eaton Corp. plc | — | 31.29 | 38.49 | 33.44 | 38.16 | |
| GE Aerospace | 39.48 | 38.98 | 29.56 | 17.29 | 56.53 | |
| Honeywell International Inc. | — | 27.10 | 29.13 | 29.82 | 25.22 | |
| Lockheed Martin Corp. | 20.74 | 20.56 | 17.62 | 19.69 | 13.92 | |
| RTX Corp. | — | 34.48 | 23.86 | 28.45 | 27.29 | |
| EV/FCFF, Sector | ||||||
| Capital Goods | — | 46.45 | 23.34 | 25.87 | 32.16 | |
| EV/FCFF, Industry | ||||||
| Industrials | — | 31.37 | 25.93 | 24.30 | 28.80 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 208,258 ÷ 586 = 355.43
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits significant fluctuations over the observed period. Initial values are followed by considerable volatility, culminating in a substantial increase in the most recent year.
- Enterprise Value (EV)
- Enterprise Value increased from US$158,751 million in 2021 to US$166,146 million in 2022, before decreasing slightly to US$165,110 million in 2023 and further to US$159,498 million in 2024. A notable increase is then observed in 2025, reaching US$208,258 million.
- Free Cash Flow to the Firm (FCFF)
- Free Cash Flow to the Firm was negative in 2021, at -US$1,599 million. It became positive in 2022 and 2023, reaching US$4,427 million and US$6,442 million respectively. However, FCFF turned sharply negative in 2024, amounting to -US$11,840 million, before recovering to a small positive value of US$586 million in 2025.
- EV/FCFF Ratio
- The EV/FCFF ratio was not calculated for 2021. In 2022, the ratio stood at 37.53. It decreased to 25.63 in 2023. The ratio is unavailable for 2024, coinciding with a negative FCFF value. In 2025, the EV/FCFF ratio increased dramatically to 355.43, driven by the combination of a higher Enterprise Value and a relatively low positive FCFF.
The substantial increase in the EV/FCFF ratio in 2025 warrants further investigation. The negative FCFF in 2024 suggests potential cash flow challenges during that year, while the high ratio in 2025, despite a small positive FCFF, indicates that the enterprise value is significantly elevated relative to the cash flow generated. The volatility in FCFF is a key driver of the fluctuations observed in the EV/FCFF ratio.