Enterprise Value to FCFF (EV/FCFF)
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
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Free Cash Flow to The Firm (FCFF)
FedEx Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1, 2 See details »
- Cash Provided by Operating Activities
- The cash provided by operating activities shows a fluctuating trend over the six-year period. Starting at 5,613 million USD in 2019, there is a slight decrease to 5,097 million USD in 2020. This is followed by a significant increase to 10,135 million USD in 2021, indicating a substantial improvement in operational cash generation. However, subsequent years see a gradual decline: 9,832 million USD in 2022, 8,848 million USD in 2023, and further down to 8,312 million USD in 2024. Despite this downward trend from 2021, the operating cash flow remains well above the pre-2021 levels, suggesting sustained strength in cash generation compared to the early years.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm exhibits notable volatility across the analyzed periods. It begins at 684 million USD in 2019 but drops sharply to a negative value of -237 million USD in 2020, indicating a potential cash outflow or increased capital expenditures relative to operating cash flow that year. Subsequently, there is a marked recovery and growth, with FCFF reaching 4,946 million USD in 2021. A downward trend follows for the next two years: 3,660 million USD in 2022 and 3,245 million USD in 2023. Interestingly, the data for 2024 shows a rebound to 3,748 million USD. Overall, the FCFF data reflects significant recovery after 2020's negative figure, with some variability but maintaining positive free cash flow in the most recent years.
- Summary
- The company's operational cash generation has generally been robust, particularly with the large jump observed in 2021, despite some decline afterward. Free cash flow faced a substantial setback in 2020 but rebounded strongly in the following year and, despite some decline between 2021 and 2023, it improved again in 2024. These trends suggest that while certain years presented challenges possibly related to external or internal factors, the overall cash flow health remains solid, supporting the firm’s ability to fund operations, investments, and potentially shareholder returns through the recent period.
Interest Paid, Net of Tax
FedEx Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
2 2024 Calculation
Cash payments for interest, net of capitalized interest, tax = Cash payments for interest, net of capitalized interest × EITR
= × =
3 2024 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= × =
- Effective Income Tax Rate (EITR) Trend
- The effective income tax rate shows some fluctuations over the analyzed period. It started at 17.6% in 2019, increased to 23.0% in 2020, then slightly decreased to 21.6% in 2021 and remained relatively stable around 21.9% in 2022. There was a notable rise to 25.9% in 2023, followed by a slight decrease to 25.8% in 2024. Overall, the tax rate exhibits an upward trend from 2019 to 2024, especially pronounced after 2021.
- Cash Payments for Interest, Net of Capitalized Interest and Tax
- Cash payments for interest fluctuated moderately across the years. Beginning at $508 million in 2019, the payments declined to $492 million in 2020, then increased significantly to $642 million in 2021. Afterward, the amount fell to $543 million in 2022, further decreased to $514 million in 2023, and rose again slightly to $552 million in 2024. The data indicates some volatility, with a peak in 2021 followed by a reduction and a modest recovery by 2024.
- Capitalized Interest, Net of Tax
- Capitalized interest amounts were relatively stable, with small year-to-year variations. The figures ranged from $42 million to $60 million, starting at $53 million in 2019, dipping to $42 million in 2020, then bouncing back to $53 million in 2021. Subsequently, there was a slight decrease to $48 million in 2022, followed by consistent increases to $57 million in 2023 and $60 million in 2024. This suggests a moderate upward movement in capitalized interest towards the end of the period.
- Overall Observations
- The effective income tax rate shows an increasing trend over the period, which could impact net profitability. Interest payments exhibit variability but lack a consistent upward or downward trajectory, possibly reflecting changes in borrowing or interest expense management. Capitalized interest tends to increase slightly over time, indicating a potential focus on capital expenditures or investment in long-term assets.
Enterprise Value to FCFF Ratio, Current
FedEx Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Uber Technologies Inc. | |
| Union Pacific Corp. | |
| United Airlines Holdings Inc. | |
| United Parcel Service Inc. | |
| EV/FCFF, Sector | |
| Transportation | |
| EV/FCFF, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2024-05-31).
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
FedEx Corp., historical EV/FCFF calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Free cash flow to the firm (FCFF)2 | |||||||
| Valuation Ratio | |||||||
| EV/FCFF3 | |||||||
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Uber Technologies Inc. | |||||||
| Union Pacific Corp. | |||||||
| United Airlines Holdings Inc. | |||||||
| United Parcel Service Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Transportation | |||||||
| EV/FCFF, Industry | |||||||
| Industrials | |||||||
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a fluctuating pattern over the analyzed periods. Starting at 59,545 million USD in 2019, the value experienced a slight increase by 2020, reaching 60,117 million USD. A significant surge is noted in 2021, peaking at 92,612 million USD, which is a considerable rise compared to previous years. Subsequently, a notable decline occurred in 2022, dropping to 70,008 million USD. The value then gradually increased over the next two years, reaching 77,708 million USD in 2023 and further climbing to 88,219 million USD by 2024.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow exhibits significant volatility throughout the timeframe. It began with a positive 684 million USD in 2019, followed by a negative cash flow of -237 million USD in 2020, indicating operational or investment challenges. A substantial recovery occurred in 2021 with FCFF rising sharply to 4,946 million USD. This positive trend continued, though at a decreasing rate, with values of 3,660 million USD in 2022 and 3,245 million USD in 2023. The figure increased again slightly in 2024, reaching 3,748 million USD.
- EV to FCFF Ratio
- This valuation ratio illustrates the relationship between enterprise value and free cash flow. The ratio was extremely high at 87.04 in 2019, reflecting either a very low FCFF or an overvaluation of enterprise value. Data for 2020 is unavailable. In 2021, the ratio decreased sharply to 18.72, indicating improved free cash flow relative to enterprise value. It remained relatively stable in 2022 at 19.13. However, an increasing trend is observed in the subsequent years, with the ratio rising to 23.94 in 2023 and slightly decreasing but still elevated at 23.54 in 2024. This suggests a moderation in cash flow growth relative to the increasing enterprise value.