.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
EOG Resources Inc., FCFF calculation
USD $ in thousands
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income (loss) | |||||
| | Net noncash charges | |||||
| | Changes in components of working capital and other assets and liabilities | |||||
| | Net cash provided by operating activities | |||||
| | Net cash paid for interest, net of capitalized interest, net of tax1 | |||||
| | Interest expense, capitalized, net of tax2 | |||||
| | Additions to oil and gas properties | |||||
| | Additions to other property, plant and equipment | |||||
| | Free cash flow to the firm (FCFF) |
1, 2 See Details »
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the EOG Resources Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | EOG Resources Inc.'s FCFF increased from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
EOG Resources Inc., interest paid, net of tax calculation
USD $ in thousands
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| Effective Income Tax Rate (EITR) | ||||||
| | EITR1 | % | % | % | % | % |
| Interest Paid, Net of Tax | ||||||
| | Net cash paid for interest, net of capitalized interest, before tax | |||||
| | Less: Net cash paid for interest, net of capitalized interest, tax2 | |||||
| | Net cash paid for interest, net of capitalized interest, net of tax | |||||
| Interest Costs Capitalized, Net of Tax | ||||||
| | Interest expense, capitalized, before tax | |||||
| | Less: Interest expense, capitalized, tax3 | |||||
| | Interest expense, capitalized, net of tax | |||||
2017 Calculations
2 Net cash paid for interest, net of capitalized interest, tax = Net cash paid for interest, net of capitalized interest × EITR
= × % =
3 Interest expense, capitalized, tax = Interest expense, capitalized × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
EOG Resources Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
| Phillips 66 | |
| EV/FCFF, Sector | |
| Oil & Gas Producers | |
| EV/FCFF, Industry | |
| Oil & Gas | |
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
EOG Resources Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Phillips 66 | ||||||
| EV/FCFF, Sector | ||||||
| Oil & Gas Producers | ||||||
| EV/FCFF, Industry | ||||||
| Oil & Gas | ||||||
2017 Calculations
3 EV/FCFF = EV ÷ FCFF
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. |
