Emerson Electric Co., FCFF calculation

USD $ in millions

	12 months ended	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Net earnings common stockholders
	Noncontrolling interests in earnings of subsidiaries
	Net noncash charges
	Changes in operating working capital
	Cash provided by operating activities
	Interest paid on all debt, net of tax¹
	Capital expenditures
	Free cash flow to the firm (FCFF)

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

Emerson Electric Co., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Interest paid on all debt, before tax
	Less: Interest paid on all debt, tax²
	Interest paid on all debt, net of tax

2018 Calculations

² Interest paid on all debt, tax = Interest paid on all debt × EITR
= hidden × hidden = hidden

Emerson Electric Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Industry
Industrials

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.

Emerson Electric Co., historical EV/FCFF calculation, comparison to benchmarks

		Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Industry
	Industrials

2018 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Emerson Electric Co.’s EV/FCFF ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

	Emerson Electric Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Emerson Electric Co. (EMR)

Enterprise Value to FCFF (EV/FCFF)