Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
Boston Scientific Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Boston Scientific Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
Boston Scientific Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The financial data over the five-year period demonstrates notable fluctuations in the cash flow metrics of the company.
- Cash Provided by Operating Activities
-
This metric showed an initial moderate figure of 310 million USD in 2018, followed by a significant increase in 2019, peaking at 1836 million USD. In 2020, there was a decline to 1508 million USD, yet the figure recovered in 2021 to 1870 million USD, representing the highest level during the period. However, in 2022, the cash provided decreased to 1526 million USD. The overall trend indicates volatility but a general capacity to generate strong operating cash flow, especially from 2019 onwards.
- Free Cash Flow to the Firm (FCFF)
-
The free cash flow followed a similar pattern to operating cash flow. Beginning at 215 million USD in 2018, it surged to 1737 million USD in 2019. The subsequent years saw decreases to 1428 million USD in 2020 and a partial recovery to 1657 million USD in 2021, before declining again to 1225 million USD in 2022. This pattern suggests periodic challenges in maintaining free cash flow levels despite the ability to generate cash from operations.
In summary, the company experienced strong cash inflows in 2019 and 2021, with declines in 2020 and 2022. While the cash provided by operating activities generally remained robust, fluctuations in free cash flow suggest varying investment levels or other cash outflows impacting the firm's free cash resources. These dynamics highlight the importance of monitoring cash management strategies to sustain financial flexibility.
Interest Paid, Net of Tax
Boston Scientific Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
2 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
The effective income tax rate (EITR) exhibits significant variation over the analyzed periods. It remains steady at 21% for the years 2018 through 2020, followed by a sharp decline to 3.3% in 2021. However, in 2022 there is a notable increase to 38.9%, representing the highest rate observed during the timeframe. This fluctuation in tax rate could have material implications on net profitability and warrants further examination into the underlying causes, such as changes in tax legislation, corporate structure, or tax planning strategies.
Cash paid for interest, net of tax, recorded in US$ millions, shows a fluctuating but generally upward pattern from 2018 to 2021. Specifically, the figure increases from 207 million in 2018 to 355 million in 2019, followed by a moderate decline to 284 million in 2020 and a subsequent rise to 327 million in 2021. In 2022, there is a decrease to 275 million. These variations may reflect changes in the company's debt levels, interest rates, or refinancing activities. The peak in 2019 followed by a drop in 2020 might be indicative of strategic debt management actions taken by the company, while the subsequent fluctuations suggest ongoing adjustments in financing costs.
Enterprise Value to FCFF Ratio, Current
Boston Scientific Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/FCFF, Sector | |
| Health Care Equipment & Services | |
| EV/FCFF, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2022-12-31).
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
Boston Scientific Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/FCFF, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value of the company shows an overall increasing trend over the five-year period. It rose from $62,154 million at the end of 2018 to $75,700 million by the end of 2022, indicating growth of approximately 21.8%. Notably, there was a dip in 2020 to $62,324 million from $65,513 million in 2019, before recovering and increasing steadily in 2021 and 2022.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm also demonstrated variability during the period. Starting at $215 million in 2018, it increased sharply to $1,737 million in 2019, representing a significant improvement. Following this peak, FCFF decreased to $1,428 million in 2020, then increased again to $1,657 million in 2021 before declining to $1,225 million in 2022. Despite fluctuations, the levels after 2018 remain substantially higher than the initial year.
- EV/FCFF Ratio
- The EV to FCFF ratio shows a pronounced decrease from an excessively high level of 289.12 in 2018 to a range between approximately 37 and 62 in subsequent years. This sharp decline primarily reflects the substantial increase in free cash flow from 2018 to 2019. In the years following, this ratio remained relatively stable, fluctuating between roughly 37.72 and 61.8, with the lowest ratio recorded in 2019 and a higher ratio reemerging in 2022. The increase in this valuation ratio in the final year suggests either a relative increase in enterprise value, a decrease in free cash flow, or both.
- Overall Insights
- The analysis reveals that while enterprise value generally increased over the observed period, free cash flow exhibited considerable volatility yet maintained levels much higher than in 2018 after the initial year. The EV/FCFF ratio normalized significantly after 2018, indicating an initial undervaluation or low cash flow scenario that improved markedly. The upward trend in enterprise value combined with fluctuating free cash flow suggests caution in interpreting valuation metrics, particularly in 2022 when the EV/FCFF ratio increased notably.