.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Emerson Electric Co., FCFF calculation
USD $ in millions
| 12 months ended | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | |
|---|---|---|---|---|---|---|---|
| | 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 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
Emerson Electric Co., interest paid, net of tax calculation
USD $ in millions
| 12 months ended | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | |
|---|---|---|---|---|---|---|---|
| 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 | ||||||
2017 Calculations
2 Interest paid on all debt, tax = Interest paid on all debt × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
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.
Enterprise Value to FCFF Ratio, Historical
Emerson Electric Co., historical EV/FCFF calculation, comparison to benchmarks
| Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
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. | Emerson Electric Co.'s EV/FCFF ratio declined from 2015 to 2016 and from 2016 to 2017. |
