Enterprise Value to FCFF (EV/FCFF)
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Chipotle Mexican Grill Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Free Cash Flow to The Firm (FCFF)
Chipotle Mexican Grill Inc., FCFF calculation
US$ in thousands
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).
- Net Cash Provided by Operating Activities
- The net cash generated from operating activities exhibits a consistent upward trend over the observed five-year period. Starting at $663.8 million in 2020, it nearly doubles to approximately $1.28 billion in 2021, indicating significant improvement in operational cash generation. This growth continues more moderately in 2022 with $1.32 billion, then accelerates further in 2023 to $1.78 billion, and reaches $2.11 billion by 2024. The steady increase points to enhanced operational efficiency or increased profitability, contributing positively to liquidity and financial flexibility.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm also demonstrates a strong upward trend, starting at $290.5 million in 2020. It experiences a substantial increase to $843.6 million in 2021, a nearly threefold rise compared to the previous year. From 2021 to 2022, the FCFF remains relatively stable at around $844 million, indicating a temporary plateau. However, the amount grows again in 2023 to $1.22 billion and continues to ascend to approximately $1.53 billion in 2024. This pattern suggests growing capacity for reinvestment or debt reduction and highlights improved cash generation after accounting for capital expenditures.
- Overall Analysis
- Both key cash flow metrics show robust growth over the five-year span, with net operating cash flow consistently outpacing FCFF, implying steady but controlled capital expenditure. The large increase between 2020 and 2021 for both metrics indicates a pivotal improvement in financial performance or operational scale, followed by sustained growth thereafter. The slight plateau in FCFF in 2022 suggests temporary stabilization, possibly due to increased capital investments or changes in working capital management, before the momentum resumes in subsequent years. The overall trends reflect a strengthening cash flow position and enhanced financial health.
Interest Paid, Net of Tax
Chipotle Mexican Grill Inc., interest paid, net of tax calculation
US$ in thousands
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 paid, tax = Interest paid × EITR
= × =
The effective income tax rate (EITR) exhibits variability over the analyzed period from 2020 to 2024. Starting at 21.0% in 2020, the rate decreased to 19.7% in 2021, indicating a reduction in the tax burden during that year. However, from 2021 onwards, the trend reversed, with the EITR rising to 23.9% in 2022 and further increasing slightly to 24.2% in 2023. In 2024, the rate decreased marginally to 23.7%, remaining elevated compared to the initial years. This fluctuation suggests some changes in tax regulations, profitability, or other fiscal factors affecting the effective tax rate over time.
No data is available for the net interest paid throughout the period, which impedes any analysis on the company's interest expenses or debt servicing trends.
Enterprise Value to FCFF Ratio, Current
Chipotle Mexican Grill Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Airbnb Inc. | |
| Booking Holdings Inc. | |
| McDonald’s Corp. | |
| Starbucks Corp. | |
| EV/FCFF, Sector | |
| Consumer Services | |
| EV/FCFF, Industry | |
| Consumer Discretionary | |
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
Chipotle Mexican Grill Inc., 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 thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| EV/FCFF, Sector | ||||||
| Consumer Services | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a general increasing trend over the analyzed five-year period. Starting at approximately 42.5 billion US dollars in 2020, it remained relatively stable through 2021 and 2022, with marginal growth. However, a significant increase occurred between 2022 and 2023, where EV rose sharply to about 70.6 billion US dollars. This upward trajectory continued moderately in 2024, culminating in an enterprise value close to 76.5 billion US dollars. The substantial rise in 2023 suggests heightened market valuation or growth expectations.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm exhibited a positive growth pattern throughout the period. In 2020, FCFF was approximately 290 million US dollars and experienced a nearly threefold increase to over 843 million by 2021. Subsequently, the value remained nearly constant between 2021 and 2022. From 2022 onwards, FCFF resumed growth, reaching approximately 1.22 billion in 2023 and further increasing to about 1.53 billion US dollars in 2024. These figures indicate an improving ability to generate cash flow over time, particularly from 2022 onwards.
- EV/FCFF Ratio
- The ratio of enterprise value to free cash flow to the firm showed a downward trend with fluctuations across the years. Initially, the ratio was extremely high at 146.36 in 2020, signifying either a high market valuation relative to cash flow or dampened cash flow levels. It dramatically decreased in 2021 to around 50.61 and remained close to this level in 2022 (51.53). There was a slight increase in 2023 to 57.71, potentially reflecting the significant rise in enterprise value outpacing FCFF growth during that year. By 2024, the ratio decreased again to 49.96, indicating an improvement in valuation relative to the firm’s free cash flow. Overall, this pattern suggests improving cash flow generation relative to enterprise valuation, notwithstanding a temporary valuation spike in 2023.