Stock Analysis on Net

General Dynamics Corp. (NYSE:GD)

This company has been moved to the archive! The financial data has not been updated since October 28, 2020.

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

General Dynamics Corp., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings 3,484 3,345 2,912 2,955 2,965
Net noncash charges 1,091 628 1,203 879 783
(Increase) decrease in assets, net of effects of business acquisitions (1,495) (664) (1,157) (1,348) 679
Increase (decrease) in liabilities, net of effects of business acquisitions (99) (161) 921 (288) (1,928)
Net cash provided by operating activities 2,981 3,148 3,879 2,198 2,499
Interest payments, net of tax1 360 256 69 60 65
Capital expenditures (987) (690) (428) (392) (569)
Free cash flow to the firm (FCFF) 2,354 2,714 3,520 1,866 1,995

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the General Dynamics Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. General Dynamics Corp. FCFF decreased from 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

General Dynamics Corp., interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 17.10% 17.80% 25.70% 27.60% 27.70%
Interest Paid, Net of Tax
Interest payments, before tax 434 312 93 83 90
Less: Interest payments, tax2 74 56 24 23 25
Interest payments, net of tax 360 256 69 60 65

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 See details »

2 2019 Calculation
Interest payments, tax = Interest payments × EITR
= 434 × 17.10% = 74


Enterprise Value to FCFF Ratio, Current

General Dynamics Corp., current EV/FCFF calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 49,032
Free cash flow to the firm (FCFF) 2,354
Valuation Ratio
EV/FCFF 20.83
Benchmarks
EV/FCFF, Competitors1
Boeing Co. 22.93
Caterpillar Inc. 17.13
Cummins Inc. 14.97
General Electric Co. 36.59
Honeywell International Inc. 29.20
Lockheed Martin Corp. 17.48
RTX Corp. 24.00
EV/FCFF, Sector
Capital Goods 27.03
EV/FCFF, Industry
Industrials 37.82

Based on: 10-K (reporting date: 2019-12-31).

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

General Dynamics Corp., historical EV/FCFF calculation, comparison to benchmarks

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 64,971 61,457 63,216 56,968 41,768
Free cash flow to the firm (FCFF)2 2,354 2,714 3,520 1,866 1,995
Valuation Ratio
EV/FCFF3 27.60 22.64 17.96 30.53 20.94
Benchmarks
EV/FCFF, Competitors4
Boeing Co.
Caterpillar Inc. 16.84
Cummins Inc. 10.35
General Electric Co. 15.85
Honeywell International Inc. 21.13
Lockheed Martin Corp. 21.21
RTX Corp. 21.94
EV/FCFF, Sector
Capital Goods 24.53
EV/FCFF, Industry
Industrials 31.17

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 64,971 ÷ 2,354 = 27.60

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. General Dynamics Corp. EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.