General Electric Co., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net earnings (loss) attributable to the Company	(6,520)	5,704)	(4,979)	(22,355)	(5,786)
Net (earnings) loss attributable to noncontrolling interests	(71)	(158)	67)	(88)	(270)
Net noncash charges	8,381)	(2,575)	14,667)	26,832)	14,165)
Changes in operating working capital	(902)	626)	664)	273)	3,285)
Cash from operating activities	888)	3,597)	10,419)	4,662)	11,394)
Cash paid during the year for interest, net of tax¹	2,338)	2,351)	1,412)	3,483)	1,394)
Additions to property, plant and equipment	(1,250)	(3,252)	(5,813)	(7,695)	(7,371)
Dispositions of property, plant and equipment	167)	1,644)	3,718)	4,519)	5,746)
Additions to internal-use software	(111)	(151)	(282)	(361)	(549)
Free cash flow to the firm (FCFF)	2,032)	4,189)	9,454)	4,608)	10,614)

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).

¹ See details »

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the General Electric Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	General Electric Co. FCFF decreased from 2019 to 2020 and from 2020 to 2021.

General Electric Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	7.80%	21.00%	63.00%	21.00%	72.40%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	2,536)	2,976)	3,816)	4,409)	5,049)
Less: Cash paid during the year for interest, tax²	198)	625)	2,404)	926)	3,655)
Cash paid during the year for interest, net of tax	2,338)	2,351)	1,412)	3,483)	1,394)

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).

¹ See details »

² 2021 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 2,536 × 7.80% = 198

General Electric Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	104,734)
Free cash flow to the firm (FCFF)	2,032)
Valuation Ratio
EV/FCFF	51.54
Benchmarks
EV/FCFF, Competitors¹
3M Co.	13.48
Boeing Co.	—
Caterpillar Inc.	22.52
Honeywell International Inc.	28.84
Lockheed Martin Corp.	16.53
Raytheon Technologies Corp.	27.48
EV/FCFF, Sector
Capital Goods	29.20
EV/FCFF, Industry
Industrials	23.42

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.

General Electric Co., 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 millions)
Enterprise value (EV)¹	114,873)	135,492)	149,810)	188,240)	234,832)
Free cash flow to the firm (FCFF)²	2,032)	4,189)	9,454)	4,608)	10,614)
Valuation Ratio
EV/FCFF³	56.53	32.34	15.85	40.85	22.13
Benchmarks
EV/FCFF, Competitors⁴
3M Co.	17.03	16.56	19.73	24.72	28.39
Boeing Co.	—	—	—	16.40	16.93
Caterpillar Inc.	20.50	23.83	16.84	19.43	24.95
Honeywell International Inc.	25.22	26.49	21.13	19.22	22.51
Lockheed Martin Corp.	13.92	14.64	21.21	41.00	18.99
Raytheon Technologies Corp.	27.29	35.26	21.94	27.92	27.84
EV/FCFF, Sector
Capital Goods	28.81	58.61	24.75	24.18	21.61
EV/FCFF, Industry
Industrials	24.69	60.86	26.36	24.43	27.01

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).

¹ See details »

² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 114,873 ÷ 2,032 = 56.53

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 Electric Co. EV/FCFF ratio increased from 2019 to 2020 and from 2020 to 2021.

General Electric Co. (NYSE:GE)

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