.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Eli Lilly & Co., 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 | |||||
| | Other changes in operating assets and liabilities, net of acquisitions and divestitures | |||||
| | Net cash provided by operating activities | |||||
| | Cash payments for interest on borrowings, net of tax1 | |||||
| | Interest costs capitalized, net of tax2 | |||||
| | Purchases of property and equipment | |||||
| | Disposals of property 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 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 increased from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
Eli Lilly & Co., 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 | ||||||
| | Cash payments for interest on borrowings, before tax | |||||
| | Less: Cash payments for interest on borrowings, tax2 | |||||
| | Cash payments for interest on borrowings, net of tax | |||||
| Interest Costs Capitalized, Net of Tax | ||||||
| | Interest costs capitalized, before tax | |||||
| | Less: Interest costs capitalized, tax3 | |||||
| | Interest costs capitalized, net of tax | |||||
2017 Calculations
2 Cash payments for interest on borrowings, tax = Cash payments for interest on borrowings × EITR
= × % =
3 Interest costs capitalized, tax = Interest costs capitalized × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
Eli Lilly & Co., 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 | |
| Abbott Laboratories | |
| AbbVie Inc. | |
| Allergan PLC | |
| Amgen Inc. | |
| Biogen Inc. | |
| Bristol-Myers Squibb Co. | |
| Celgene Corp. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| EV/FCFF, Sector | |
| Pharmaceuticals & Biotechnology | |
| EV/FCFF, Industry | |
| Health Care | |
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
Eli Lilly & Co., 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 | ||||||
| Abbott Laboratories | ||||||
| AbbVie Inc. | ||||||
| Allergan PLC | ||||||
| Amgen Inc. | ||||||
| Biogen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Celgene Corp. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Pharmaceuticals & Biotechnology | ||||||
| EV/FCFF, Industry | ||||||
| Health Care | ||||||
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. | Eli Lilly & Co.'s EV/FCFF ratio declined from 2015 to 2016 and from 2016 to 2017. |
