.Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
FedEx Corp., FCFF calculation
USD $ in millions
| 12 months ended | May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | |
|---|---|---|---|---|---|---|---|
| | Net income | ||||||
| | Net noncash charges | ||||||
| | Changes in assets and liabilities | ||||||
| | Cash provided by operating activities | ||||||
| | Cash payments for interest, net of capitalized interest, net of tax1 | ||||||
| | Capitalized interest, net of tax2 | ||||||
| | Capital expenditures | ||||||
| | 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 FedEx Corp.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | FedEx Corp.'s FCFF declined from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
FedEx Corp., interest paid, net of tax calculation
USD $ in millions
| 12 months ended | May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | |
|---|---|---|---|---|---|---|---|
| Effective Income Tax Rate (EITR) | |||||||
| | EITR1 | % | % | % | % | % | % |
| Interest Paid, Net of Tax | |||||||
| | Cash payments for interest, net of capitalized interest, before tax | ||||||
| | Less: Cash payments for interest, net of capitalized interest, tax2 | ||||||
| | Cash payments for interest, net of capitalized interest, net of tax | ||||||
| Interest Costs Capitalized, Net of Tax | |||||||
| | Capitalized interest, before tax | ||||||
| | Less: Capitalized interest, tax3 | ||||||
| | Capitalized interest, net of tax | ||||||
2017 Calculations
2 Cash payments for interest, net of capitalized interest, tax = Cash payments for interest, net of capitalized interest × EITR
= × % =
3 Capitalized interest, tax = Capitalized interest × EITR
= × % =
Enterprise Value to FCFF Ratio, Current
FedEx 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 | |
| Union Pacific Corp. | |
| United Parcel Service Inc. | |
| EV/FCFF, Sector | |
| Industrial Transportation | |
| 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
FedEx Corp., historical EV/FCFF calculation, comparison to benchmarks
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 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, Competitors | |||||||
| Union Pacific Corp. | |||||||
| United Parcel Service Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Industrial Transportation | |||||||
| 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. | FedEx Corp.'s EV/FCFF ratio increased from 2015 to 2016 and from 2016 to 2017. |
