.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
Exxon Mobil Corp., FCFF calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income attributable to ExxonMobil | |||||
| | Net income attributable to noncontrolling interests | |||||
| | Net noncash charges | |||||
| | Changes in operational working capital, excluding cash and debt | |||||
| | Net cash provided by operating activities | |||||
| | Cash payments for interest, net of tax1 | |||||
| | Interest capitalized, net of tax2 | |||||
| | Additions to property, plant 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 Exxon Mobil Corp.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Exxon Mobil Corp.'s FCFF increased from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
Exxon Mobil Corp., interest paid, net of tax calculation
USD $ in millions
| 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, before tax | |||||
| | Less: Cash payments for interest, tax2 | |||||
| | Cash payments for interest, net of tax | |||||
| Interest Costs Capitalized, Net of Tax | ||||||
| | Interest capitalized, before tax | |||||
| | Less: Interest capitalized, tax3 | |||||
| | Interest capitalized, net of tax | |||||
2017 Calculations
2 Cash payments for interest, tax = Cash payments for interest × EITR
= × % =
3 Interest capitalized, tax = Interest capitalized × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
Exxon Mobil Corp., 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, Competitors | |
| Chevron Corp. | |
| ConocoPhillips | |
| EOG Resources Inc. | |
| Occidental Petroleum Corp. | |
| Phillips 66 | |
| EV/FCFF, Sector | |
| Oil & Gas Producers | |
| EV/FCFF, Industry | |
| Oil & Gas | |
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
Exxon Mobil Corp., 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 millions) | ||||||
| | Enterprise value (EV)1 | |||||
| | Free cash flow to the firm (FCFF)2 | |||||
| Ratio | ||||||
| | EV/FCFF3 | |||||
| Benchmarks | ||||||
| EV/FCFF, Competitors | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| EOG Resources Inc. | ||||||
| Occidental Petroleum Corp. | ||||||
| Phillips 66 | ||||||
| EV/FCFF, Sector | ||||||
| Oil & Gas Producers | ||||||
| EV/FCFF, Industry | ||||||
| Oil & Gas | ||||||
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. | Exxon Mobil Corp.'s EV/FCFF ratio declined from 2015 to 2016 and from 2016 to 2017. |
