Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Exxon Mobil Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
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The financial information reveals trends in net cash provided by operating activities and free cash flow to the firm (FCFF) over a five-year period. Both metrics experienced significant fluctuation during the observed timeframe.
- Net Cash from Operations
- Net cash provided by operating activities increased substantially from 2021 to 2022, rising from US$48,129 million to US$76,797 million. However, this was followed by a decrease in 2023 to US$55,369 million, and a further, albeit smaller, decline in 2024 to US$55,022 million. A continued downward trend is observed in 2025, with net cash from operations reaching US$51,970 million. While remaining positive throughout the period, the overall trend indicates diminishing operational cash generation.
- Free Cash Flow to the Firm (FCFF)
- FCFF mirrored the pattern observed in net cash from operations, with a notable increase from US$37,070 million in 2021 to US$59,398 million in 2022. A substantial decrease occurred in 2023, with FCFF falling to US$34,613 million. This downward trend continued in 2024, reaching US$31,989 million, and accelerated in 2025, with FCFF declining to US$24,873 million. The consistent decline in FCFF over the latter part of the period suggests a weakening ability to generate cash available to all investors.
The correlation between net cash from operations and FCFF is strong, indicating that changes in operational cash flow directly impact the amount of free cash flow available to the firm. The significant drop in both metrics from 2022 to 2025 warrants further investigation to determine the underlying causes, such as changes in working capital, capital expenditures, or overall profitability.
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Interest Paid, Net of Tax
Exxon Mobil Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2 2025 Calculation
Cash interest paid, tax = Cash interest paid × EITR
= 218 × 28.00% = 61
3 2025 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 1,534 × 28.00% = 430
The period under review demonstrates fluctuating trends in net-of-tax interest expense and capitalization, alongside a relatively stable, then declining, effective income tax rate. Cash interest paid, net of tax, decreased significantly from 2021 to 2023, before experiencing a modest increase in 2024, and then a substantial decrease in 2025. Conversely, interest capitalized, net of tax, exhibited a consistent upward trend throughout the period, culminating in a considerable value in 2025.
- Cash Interest Paid, Net of Tax
- Cash interest paid, net of tax, began at US$565 million in 2021. A decline was observed in 2022 to US$446 million, continuing to US$391 million in 2023. The value increased slightly to US$418 million in 2024, but experienced a significant reduction to US$157 million in 2025. This represents a substantial decrease over the five-year period.
- Interest Capitalized, Net of Tax
- Interest capitalized, net of tax, showed a consistent increase throughout the period. Starting at US$452 million in 2021, it rose to US$561 million in 2022, then to US$772 million in 2023. This upward trend continued with values of US$855 million in 2024 and US$1,104 million in 2025. The increase suggests a growing level of qualifying asset expenditures.
- Effective Income Tax Rate
- The effective income tax rate remained relatively stable at 31.00% in 2021, increasing to 33.00% in 2022 and remaining at that level through 2024. A notable decrease to 28.00% was observed in 2025. This change in the effective income tax rate could be attributable to various factors, including changes in tax legislation, jurisdictional mix of earnings, or the recognition of tax benefits.
The contrasting trends in cash interest paid and interest capitalized suggest a shift in how interest expenses are being treated. The increasing capitalization of interest, coupled with the decreasing cash interest paid, could indicate a greater proportion of debt financing is being used to fund projects that meet the criteria for capitalization, or a change in debt repayment strategies. The decline in cash interest paid in 2025 is particularly noteworthy and warrants further investigation.
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Enterprise Value to FCFF Ratio, Current
Exxon Mobil Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 690,611) |
| Free cash flow to the firm (FCFF) | 24,873) |
| Valuation Ratio | |
| EV/FCFF | 27.77 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Chevron Corp. | 25.03 |
| ConocoPhillips | 20.78 |
| EV/FCFF, Sector | |
| Oil, Gas & Consumable Fuels | 25.69 |
| EV/FCFF, Industry | |
| Energy | 24.94 |
Based on: 10-K (reporting date: 2025-12-31).
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
Exxon Mobil Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 667,944) | 504,190) | 431,696) | 465,686) | 373,021) | |
| Free cash flow to the firm (FCFF)2 | 24,873) | 31,989) | 34,613) | 59,398) | 37,070) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 26.85 | 15.76 | 12.47 | 7.84 | 10.06 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Chevron Corp. | 23.70 | 18.98 | 14.85 | 8.27 | 13.33 | |
| ConocoPhillips | 18.77 | 16.31 | 15.38 | 7.43 | 10.72 | |
| EV/FCFF, Sector | ||||||
| Oil, Gas & Consumable Fuels | 24.46 | 16.71 | 13.63 | 7.91 | 11.15 | |
| EV/FCFF, Industry | ||||||
| Energy | 23.94 | 16.61 | 13.96 | 8.54 | 11.54 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 667,944 ÷ 24,873 = 26.85
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits a fluctuating pattern over the five-year period. Initial values demonstrate a decrease, followed by increases, culminating in a substantial rise by the final year.
- Enterprise Value (EV)
- Enterprise Value increased from US$373,021 million in 2021 to US$465,686 million in 2022, representing a significant expansion. A subsequent decrease to US$431,696 million occurred in 2023, before rising again to US$504,190 million in 2024. The most substantial increase occurred between 2024 and 2025, reaching US$667,944 million.
- Free Cash Flow to the Firm (FCFF)
- Free Cash Flow to the Firm peaked in 2022 at US$59,398 million, following US$37,070 million in 2021. A considerable decline was observed in 2023, falling to US$34,613 million, and this downward trend continued in 2024 with a value of US$31,989 million. The lowest value within the observed period was recorded in 2025, at US$24,873 million.
- EV/FCFF Ratio
- The EV/FCFF ratio began at 10.06 in 2021, decreasing to 7.84 in 2022, coinciding with the increase in FCFF. In 2023, the ratio rose to 12.47, driven by a decrease in FCFF and a slight decrease in EV. A further increase to 15.76 was observed in 2024. The most pronounced change occurred between 2024 and 2025, with the ratio escalating to 26.85, reflecting the combination of a substantial increase in EV and a continued decline in FCFF.
The increasing EV/FCFF ratio in the later years suggests that the enterprise value is growing at a faster rate than the free cash flow generated by the firm. This could indicate investor expectations of future growth not yet reflected in current cash flows, or potentially a relative overvaluation based on current free cash flow generation.
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