Generac Holdings Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to Generac Holdings Inc.	550,494)	350,576)	252,007)	238,257)	159,386)
Net (income) loss attributable to noncontrolling interests	6,075)	(3,358)	301)	2,963)	1,749)
Net noncash charges	113,132)	120,593)	113,980)	94,126)	87,558)
Net changes in operating assets and liabilities, net of acquisitions	(258,545)	18,722)	(57,401)	(88,119)	12,423)
Net cash provided by operating activities	411,156)	486,533)	308,887)	247,227)	261,116)
Cash paid during the period, interest, net of tax¹	22,413)	22,379)	27,982)	31,698)	26,636)
Proceeds from sale of property and equipment	259)	179)	95)	214)	82)
Expenditures for property and equipment	(109,992)	(62,128)	(60,802)	(47,601)	(33,261)
ROU assets obtained in exchange for lease liabilities, finance leases	(4,026)	(3,737)	(8,797)	—)	—)
Free cash flow to the firm (FCFF)	319,810)	443,226)	267,365)	231,538)	254,573)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Generac Holdings Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Generac Holdings Inc. FCFF increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Generac Holdings Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	19.50%	22.20%	21.10%	22.70%	35.20%
Interest Paid, Net of Tax
Cash paid during the period, interest, before tax	27,842)	28,765)	35,465)	41,007)	41,105)
Less: Cash paid during the period, interest, tax²	5,429)	6,386)	7,483)	9,309)	14,469)
Cash paid during the period, interest, net of tax	22,413)	22,379)	27,982)	31,698)	26,636)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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² 2021 Calculation
Cash paid during the period, interest, tax = Cash paid during the period, interest × EITR
= 27,842 × 19.50% = 5,429

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Generac Holdings Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	16,922,251)
Free cash flow to the firm (FCFF)	319,810)
Valuation Ratio
EV/FCFF	52.91
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	22.77
Caterpillar Inc.	16.41
Eaton Corp. plc	42.48
General Electric Co.	35.76
Honeywell International Inc.	28.91
Lockheed Martin Corp.	18.28
RTX Corp.	25.70
EV/FCFF, Sector
Capital Goods	38.92
EV/FCFF, Industry
Industrials	32.42

Based on: 10-K (reporting date: 2021-12-31).

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.

Generac Holdings Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	18,849,998)	21,165,351)	7,290,571)	3,929,062)	3,669,977)
Free cash flow to the firm (FCFF)²	319,810)	443,226)	267,365)	231,538)	254,573)
Valuation Ratio
EV/FCFF³	58.94	47.75	27.27	16.97	14.42
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	—	—	—	—	—
Caterpillar Inc.	20.50	23.83	16.84	—	—
Eaton Corp. plc	38.16	21.94	15.50	—	—
General Electric Co.	56.53	32.34	15.85	—	—
Honeywell International Inc.	25.22	26.49	21.13	—	—
Lockheed Martin Corp.	13.92	14.64	21.21	—	—
RTX Corp.	27.29	35.26	21.94	—	—
EV/FCFF, Sector
Capital Goods	32.16	74.97	24.73	—	—
EV/FCFF, Industry
Industrials	28.77	189.30	30.14	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 18,849,998 ÷ 319,810 = 58.94

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Generac Holdings Inc. EV/FCFF ratio increased from 2019 to 2020 and from 2020 to 2021.

Generac Holdings Inc. (NYSE:GNRC)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical