Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Bristol-Myers Squibb 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).
- Operating Cash Flow
- The net cash provided by operating activities exhibited a generally positive trend over the analyzed period. Beginning at 14,052 million US dollars at the end of 2020, the amount increased significantly to 16,207 million in 2021. This was followed by a decline to 13,066 million in 2022, marking the lowest point in the observed years. Subsequently, there was a gradual recovery to 13,860 million in 2023 and further increase to 15,190 million in 2024, indicating a rebound in the company's operational cash generation.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm mirrored a similar pattern as the net operating cash flow. It started at 14,563 million US dollars in 2020, climbed to a peak of 16,533 million in 2021, then dropped notably to 13,100 million in 2022. After 2022, it slightly rose to 13,795 million in 2023 and further increased to 15,364 million by the end of 2024. This suggests that free cash flow was resilient and followed the oscillations seen in operating cash flow but ended the period with a positive trend.
- Overall Analysis
- Both key cash flow measures showed strong performance initially in 2021, possibly reflecting operational efficiencies or favorable market conditions during that year. The decrease in 2022 may indicate challenges or increased expenditures during that period, while the recovery in subsequent years points to effective management responses and improvement in cash generation capacity.
- The close alignment between the free cash flow to the firm and net cash from operations confirms that capital expenditures and working capital changes likely remained proportionate to cash inflows and operations, without large divergence or one-off impacts.
Interest Paid, Net of Tax
Bristol-Myers Squibb 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, tax = Interest payments × EITR
= 1,800 × 21.00% = 378
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited notable fluctuations over the five-year span. Starting at 21% in 2020, it decreased sharply to 13.4% in 2021, indicating a significant reduction in tax burden during that year. In 2022, the rate increased moderately to 17.7%, followed by a pronounced decline to a low of 4.7% in 2023, suggesting possible one-time tax benefits or adjustments. By 2024, the rate reverted to 21%, returning to the original level observed in 2020. This volatility indicates variable tax circumstances or changes in tax strategy across these years.
- Interest Payments, Net of Tax (US$ in millions)
- Interest payments, net of tax, remained relatively stable between 2020 and 2023, fluctuating within a narrow range from $1,264 million in 2020 to $1,144 million in 2023. The highest payment in this period was $1,299 million in 2021, followed by a decrease in the two subsequent years. However, in 2024, there was a marked increase to $1,422 million, representing the highest level across the examined timeframe. This upward shift in 2024 points to either increased borrowing costs, higher debt levels, or changes in financing structure impacting interest expenses.
Enterprise Value to FCFF Ratio, Current
Bristol-Myers Squibb Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 135,835) |
| Free cash flow to the firm (FCFF) | 15,364) |
| Valuation Ratio | |
| EV/FCFF | 8.84 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| AbbVie Inc. | 19.86 |
| Amgen Inc. | 15.58 |
| Danaher Corp. | 28.07 |
| Eli Lilly & Co. | 182.94 |
| Gilead Sciences Inc. | 14.36 |
| Johnson & Johnson | 18.04 |
| Merck & Co. Inc. | 12.16 |
| Pfizer Inc. | 15.12 |
| Regeneron Pharmaceuticals Inc. | 14.29 |
| Thermo Fisher Scientific Inc. | 21.05 |
| Vertex Pharmaceuticals Inc. | — |
| EV/FCFF, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 22.20 |
| EV/FCFF, Industry | |
| Health Care | 21.77 |
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
Bristol-Myers Squibb 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 | 152,789) | 126,048) | 181,761) | 173,993) | 169,334) | |
| Free cash flow to the firm (FCFF)2 | 15,364) | 13,795) | 13,100) | 16,533) | 14,563) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 9.94 | 9.14 | 13.87 | 10.52 | 11.63 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| AbbVie Inc. | 20.05 | 14.89 | 12.15 | 13.18 | 13.95 | |
| Amgen Inc. | 15.35 | 22.22 | 16.01 | 15.82 | 14.51 | |
| Danaher Corp. | 28.93 | 36.34 | 25.74 | 28.25 | 30.66 | |
| Eli Lilly & Co. | 200.93 | 655.33 | 59.14 | 38.37 | 39.01 | |
| Gilead Sciences Inc. | 14.50 | 13.41 | 13.58 | 8.42 | 13.60 | |
| Johnson & Johnson | 18.16 | 19.30 | 23.80 | 21.25 | 20.75 | |
| Merck & Co. Inc. | 13.24 | 37.84 | 19.09 | 23.27 | 34.12 | |
| Pfizer Inc. | 15.33 | 32.24 | 9.15 | 8.40 | 21.74 | |
| Regeneron Pharmaceuticals Inc. | 19.30 | 23.99 | 17.96 | 9.81 | 25.74 | |
| Thermo Fisher Scientific Inc. | 26.13 | 28.85 | 31.61 | 33.14 | 26.14 | |
| Vertex Pharmaceuticals Inc. | — | 29.45 | 16.68 | 22.47 | 16.00 | |
| EV/FCFF, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 23.57 | 27.24 | 17.95 | 16.12 | 19.74 | |
| EV/FCFF, Industry | ||||||
| Health Care | 23.63 | 24.95 | 17.94 | 17.18 | 18.55 | |
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
= 152,789 ÷ 15,364 = 9.94
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated a general upward trend from 2020 to 2022, rising from $169,334 million to $181,761 million. However, a notable decline occurred in 2023, bringing the value down significantly to $126,048 million. In 2024, the enterprise value partially recovered to $152,789 million, though it remained below the peak observed in 2022.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm showed a fluctuating pattern over the observed years. There was an increase from $14,563 million in 2020 to a peak of $16,533 million in 2021. This was followed by a decline to $13,100 million in 2022. From 2022 onwards, FCFF experienced a recovery trend, rising to $13,795 million in 2023 and further increasing to $15,364 million in 2024, indicating improving cash generation capability after the dip in 2022.
- EV to FCFF Ratio
- The EV/FCFF ratio mirrored the volatility seen in enterprise value, but with an overall decreasing trend from 11.63 in 2020 to 10.52 in 2021, suggesting an improved valuation relative to free cash flow. However, in 2022, the ratio increased markedly to 13.87, indicating a higher enterprise value per unit of cash flow, potentially reflecting market valuation shifts or cash flow declines. Subsequently, the ratio decreased to 9.14 in 2023 and slightly rose to 9.94 in 2024, levels that suggest more attractive valuations relative to cash flow compared to earlier years.
- Summary of Observed Trends
- Overall, the data indicates an unstable yet recovering profile in both enterprise value and free cash flow after 2021. The significant drop in enterprise value in 2023 contrasts with the relatively stable free cash flow, which shows consistent recovery from 2022. The fluctuations in the EV/FCFF ratio highlight the variable market valuation relative to cash flow, with the ratio peaking in 2022 and then declining to more moderate levels. This may imply shifting investor sentiment or operational factors influencing cash flow and valuation dynamics during the period observed.