Microsoft Excel LibreOffice Calc

Chevron Corp. (CVX)


Enterprise Value to FCFF (EV/FCFF)

Difficulty: Intermediate


Free Cash Flow to The Firm (FCFF)

Chevron Corp., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income (loss) attributable to Chevron Corporation 14,824  9,195  (497) 4,587  19,241 
Net income attributable to noncontrolling interests 36  74  66  123  69 
Net noncash charges 16,476  10,770  13,827  16,725  12,705 
Net (increase) decrease in operating working capital (718) 476  (550) (1,979) (540)
Net cash provided by operating activities 30,618  20,515  12,846  19,456  31,475 
Cash payments for interest on debt, net of capitalized interest, net of tax1 531  208  32  —  — 
Capitalized interest, net of tax2 125  468  110  482  222 
Capital expenditures (13,792) (13,404) (18,109) (29,504) (35,407)
Assets acquired through capital lease obligations and other financing obligations (75) (8) (5) (47) (332)
Free cash flow to the firm (FCFF) 17,406  7,779  (5,126) (9,613) (4,042)

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-20).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Chevron Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Chevron Corp.’s FCFF increased from 2016 to 2017 and from 2017 to 2018.

Interest Paid, Net of Tax

Chevron Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Effective Income Tax Rate (EITR)
EITR1 27.90% 21.40% 80.00% 2.70% 38.10%
Interest Paid, Net of Tax
Cash payments for interest on debt, net of capitalized interest, before tax 736  265  158  —  — 
Less: Cash payments for interest on debt, net of capitalized interest, tax2 205  57  126  —  — 
Cash payments for interest on debt, net of capitalized interest, net of tax 531  208  32  —  — 
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax 173  595  552  495  358 
Less: Capitalized interest, tax3 48  127  442  13  136 
Capitalized interest, net of tax 125  468  110  482  222 

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-20).

1 See Details »

2 2018 Calculation
Cash payments for interest on debt, net of capitalized interest, tax = Cash payments for interest on debt, net of capitalized interest × EITR
= 736 × 27.90% = 205

3 2018 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 173 × 27.90% = 48


Enterprise Value to FCFF Ratio, Current

Chevron Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 260,948 
Free cash flow to the firm (FCFF) 17,406 
Ratio
EV/FCFF 14.99
Benchmarks
EV/FCFF, Competitors1
ConocoPhillips 9.43
EOG Resources Inc. 27.22
Exxon Mobil Corp. 20.05
Occidental Petroleum Corp. 13.51
Phillips 66 10.69
EV/FCFF, Sector
Oil & Gas Producers 15.71
EV/FCFF, Industry
Oil & Gas 16.21

Based on: 10-K (filing date: 2019-02-22).

1 Click competitor name to see calculations.

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Chevron Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 252,050  245,054  250,463  189,063  219,954 
Free cash flow to the firm (FCFF)2 17,406  7,779  (5,126) (9,613) (4,042)
Ratio
EV/FCFF3 14.48 31.50
Benchmarks
EV/FCFF, Competitors4
ConocoPhillips 10.98 4.33 50.14 317.23 52.60
EOG Resources Inc. 31.04 204.15 101.82
Exxon Mobil Corp. 21.68 23.04 52.60 83.25 32.32
Occidental Petroleum Corp. 19.00 37.33 2,081.74
Phillips 66 10.33 26.04 119.84 223.52
EV/FCFF, Sector
Oil & Gas Producers 16.72 18.21 79.68
EV/FCFF, Industry
Oil & Gas 17.12 19.40 349.79 54.93

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-20).

1 See Details »

2 See Details »

3 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 252,050 ÷ 17,406 = 14.48

4 Click competitor name to see calculations.

Ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Chevron Corp.’s EV/FCFF ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.