Stock Analysis on Net
Stock Analysis on Net
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Eli Lilly & Co. (NYSE:LLY)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Eli Lilly & Co., FCFF calculation

US$ in thousands

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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) 6,193,700  8,318,400  3,232,000  (204,100) 2,737,600 
Net noncash charges 1,053,300  (1,794,600) 4,671,200  2,614,800  2,597,500 
Other changes in operating assets and liabilities, net of acquisitions and divestitures (747,400) (1,687,200) (2,378,700) 3,204,900  (484,100)
Net cash provided by operating activities 6,499,600  4,836,600  5,524,500  5,615,600  4,851,000 
Cash payments for interest on borrowings, net of tax1 296,247  269,054  200,905  149,940  118,789 
Interest costs capitalized, net of tax2 —  —  —  —  — 
Purchases of property and equipment (1,387,900) (1,033,900) (1,210,600) (1,076,800) (1,037,000)
Free cash flow to the firm (FCFF) 5,407,947  4,071,754  4,514,805  4,688,740  3,932,789 

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21).

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

Interest Paid, Net of Tax

Eli Lilly & Co., interest paid, net of tax calculation

US$ in thousands

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 14.33% 11.93% 10.23% 22.19% 18.86%
Interest Paid, Net of Tax
Cash payments for interest on borrowings, before tax 345,800  305,500  223,800  192,700  146,400 
Less: Cash payments for interest on borrowings, tax2 49,553  36,446  22,895  42,760  27,611 
Cash payments for interest on borrowings, net of tax 296,247  269,054  200,905  149,940  118,789 
Interest Costs Capitalized, Net of Tax
Interest costs capitalized, before tax —  —  —  —  — 
Less: Interest costs capitalized, tax3 —  —  —  —  — 
Interest costs capitalized, net of tax —  —  —  —  — 

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21).

1 See details »

2 2020 Calculation
Cash payments for interest on borrowings, tax = Cash payments for interest on borrowings × EITR
= 345,800 × 14.33% = 49,553

3 2020 Calculation
Interest costs capitalized, tax = Interest costs capitalized × EITR
= 0 × 14.33% = 0

Enterprise Value to FCFF Ratio, Current

Eli Lilly & Co., current EV/FCFF calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 246,620,296 
Free cash flow to the firm (FCFF) 5,407,947 
Valuation Ratio
EV/FCFF 45.60
Benchmarks
EV/FCFF, Competitors1
AbbVie Inc. 15.01
Amgen Inc. 14.70
Gilead Sciences Inc. 14.49
Illumina Inc. 78.67
Johnson & Johnson 22.06
Merck & Co. Inc. 35.06
Pfizer Inc. 28.39
Regeneron Pharmaceuticals Inc. 29.79
Thermo Fisher Scientific Inc. 30.90
Zoetis Inc. 52.61
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences 23.82
EV/FCFF, Industry
Health Care 22.79

Based on: 10-K (filing date: 2021-02-17).

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

Eli Lilly & Co., historical EV/FCFF calculation, comparison to benchmarks

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 210,974,169  147,658,206  132,220,569  90,652,292  93,004,803 
Free cash flow to the firm (FCFF)2 5,407,947  4,071,754  4,514,805  4,688,740  3,932,789 
Valuation Ratio
EV/FCFF3 39.01 36.26 29.29 19.33 23.65
Benchmarks
EV/FCFF, Competitors4
AbbVie Inc. 13.95 11.60 10.87 20.93 17.64
Amgen Inc. 14.51 16.05 10.31 10.37 11.32
Gilead Sciences Inc. 13.60 9.78 9.80 9.38 6.44
Illumina Inc. 78.36 48.98 49.08 55.92 55.80
Johnson & Johnson 20.74 19.34 19.27 19.67 19.65
Merck & Co. Inc. 34.12 20.46 25.27 31.98 20.51
Pfizer Inc. 22.98 20.14 17.76 15.13 14.94
Regeneron Pharmaceuticals Inc. 25.74 19.54 23.09 32.47 38.99
Thermo Fisher Scientific Inc. 26.14 28.88 27.01 25.91 25.48
Zoetis Inc. 43.54 47.27 28.40 33.69 48.79
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences 21.56 19.01 17.64 18.32 16.06
EV/FCFF, Industry
Health Care 20.01 20.36 19.98 19.70 18.12

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21).

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2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 210,974,169 ÷ 5,407,947 = 39.01

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. Eli Lilly & Co.’s EV/FCFF ratio increased from 2018 to 2019 and from 2019 to 2020.