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

Boston Scientific Corp. (NYSE:BSX)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Boston Scientific Corp., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (loss) (82) 4,700  1,671  104  347 
Net noncash charges 1,548  (2,576) 808  1,270  686 
Increase (decrease) in operating assets and liabilities, excluding purchase accounting 42  (288) (2,169) 52  (61)
Cash provided by operating activities 1,508  1,836  310  1,426  972 
Cash paid for interest, net of tax1 284  355  207  153  151 
Purchases of property, plant and equipment (376) (461) (316) (319) (376)
Proceeds on disposals of property, plant and equipment 12  7  14  —  29 
Free cash flow to the firm (FCFF) 1,428  1,737  215  1,260  776 

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Boston Scientific Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Boston Scientific Corp.’s FCFF increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Interest Paid, Net of Tax

Boston Scientific Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 21.00% 21.00% 21.00% 35.00% 35.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax 359  449  262  235  233 
Less: Cash paid for interest, tax2 75  94  55  82  82 
Cash paid for interest, net of tax 284  355  207  153  151 

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23).

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2 2020 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 359 × 21.00% = 75

Enterprise Value to FCFF Ratio, Current

Boston Scientific Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 70,100 
Free cash flow to the firm (FCFF) 1,428 
Valuation Ratio
EV/FCFF 49.10
Benchmarks
EV/FCFF, Competitors1
Abbott Laboratories 36.40
Anthem Inc. 8.09
Becton, Dickinson & Co. 27.30
Bristol-Myers Squibb Co. 12.87
CVS Health Corp. 10.52
Danaher Corp. 39.76
Edwards Lifesciences Corp. 101.07
Intuitive Surgical Inc. 96.97
Medtronic PLC 34.73
Stryker Corp. 36.18
UnitedHealth Group Inc. 19.45
EV/FCFF, Sector
Health Care Equipment & Services 21.67
EV/FCFF, Industry
Health Care 22.74

Based on: 10-K (filing date: 2021-02-23).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 62,324  65,513  62,154  42,317  38,666 
Free cash flow to the firm (FCFF)2 1,428  1,737  215  1,260  776 
Valuation Ratio
EV/FCFF3 43.66 37.72 289.12 33.59 49.80
Benchmarks
EV/FCFF, Competitors4
Abbott Laboratories 36.94 33.05 26.46 23.86 36.35
Anthem Inc. 6.04 12.73 24.58 13.91 12.29
Becton, Dickinson & Co. 25.12 30.47 33.39 26.24 20.34
Bristol-Myers Squibb Co. 11.63 23.39 15.74 24.15 51.76
CVS Health Corp. 9.42 12.30 17.89 14.20 12.09
Danaher Corp. 30.66 37.11 25.21 25.94 26.16
Edwards Lifesciences Corp. 81.12 51.46 51.20 33.02 37.28
Intuitive Surgical Inc. 76.70 54.58 57.79 47.07 25.06
Medtronic PLC 21.43 22.07 27.88 21.24 26.12
Stryker Corp. 33.98 49.82 32.91 50.00 33.54
UnitedHealth Group Inc. 15.82 17.51 18.63 18.98 19.38
EV/FCFF, Sector
Health Care Equipment & Services 18.46 22.17 24.14 22.02 22.75
EV/FCFF, Industry
Health Care 20.01 20.36 19.98 19.70 18.12

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 62,324 ÷ 1,428 = 43.66

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. Boston Scientific Corp.’s EV/FCFF ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.