Enterprise Value to FCFF (EV/FCFF)
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2010
- Total Asset Turnover since 2010
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Free Cash Flow to The Firm (FCFF)
General Motors Co., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1, 2 See details »
The financial information indicates a generally positive trend in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the observed period, though with some fluctuation. Operating cash flow demonstrates consistent growth, while FCFF exhibits a more varied pattern.
- Net Cash from Operations
- Net cash provided by operating activities increased from US$15,188 million in 2021 to US$16,043 million in 2022, representing a growth of approximately 5.9%. This upward trajectory continued into 2023, reaching US$20,930 million, a substantial increase of roughly 30.4%. A slight decrease was noted in 2024, with operating cash flow falling to US$20,129 million. However, a significant rebound occurred in 2025, with operating cash flow reaching US$26,867 million, marking a 33.5% increase from the prior year.
- Free Cash Flow to the Firm (FCFF)
- FCFF followed an increasing trend from 2021 to 2023. It rose from US$10,047 million in 2021 to US$12,063 million in 2022, a growth of approximately 20.1%. Further growth was observed in 2023, with FCFF reaching US$14,555 million, representing a 20.7% increase. A notable decline occurred in 2024, as FCFF decreased to US$10,071 million. However, FCFF experienced a substantial recovery in 2025, increasing to US$18,063 million, a 79.1% increase from the 2024 level.
The divergence between the growth in operating cash flow and FCFF suggests potential changes in capital expenditure or other non-operating cash flows. The significant drop in FCFF in 2024, followed by a strong recovery in 2025, warrants further investigation to understand the underlying drivers of these fluctuations. The overall trend indicates a strengthening of cash generation capabilities, particularly as evidenced by the performance in the most recent year presented.
Interest Paid, Net of Tax
General Motors Co., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2 2025 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= × =
3 2025 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= × =
The period under review demonstrates fluctuating values in both net interest paid and the effective income tax rate. A significant increase in cash paid for interest, net of tax, is observed between 2021 and 2023, followed by a slight decrease in 2024 and a further increase in 2025. The effective income tax rate exhibits considerable volatility throughout the period, impacting the overall after-tax cost of debt.
- Cash Paid for Interest, Net of Tax
- Cash paid for interest, net of tax, increased from US$2,577 million in 2021 to US$2,973 million in 2022, representing a 15.4% rise. A substantial jump occurred in 2023, reaching US$5,202 million, more than doubling the previous year’s figure. This was followed by a modest decrease to US$4,985 million in 2024. The most recent year, 2025, shows a further increase to US$5,915 million, establishing a new high for the period. This overall upward trend suggests increasing debt levels or rising interest rates, or a combination of both.
- Effective Income Tax Rate (EITR)
- The effective income tax rate experienced significant fluctuations. It began at 24.28% in 2021, then decreased substantially to 17.55% in 2022. A dramatic decline continued into 2023, falling to 5.67%. The rate increased to 19.37% in 2024 before decreasing again to 10.80% in 2025. These variations in the EITR would influence the actual after-tax expense associated with interest payments.
- Interest Capitalized, Net of Tax
- Interest capitalization, net of tax, was not reported for 2021, 2022, or 2023. It first appeared in 2024 at US$173 million and increased to US$282 million in 2025. The capitalization of interest suggests ongoing investment in projects where borrowing costs are being deferred as part of the asset’s cost. The increasing trend in capitalized interest aligns with the overall increase in interest expense.
The combination of rising net interest paid and fluctuating effective tax rates indicates a complex financial landscape. The increasing trend in interest capitalization suggests continued investment activity, but the overall higher interest burden requires further investigation to determine its sustainability and impact on profitability.
Enterprise Value to FCFF Ratio, Current
General Motors Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Ford Motor Co. | |
| Tesla Inc. | |
| EV/FCFF, Sector | |
| Automobiles & Components | |
| EV/FCFF, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2025-12-31).
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 Motors Co., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Ford Motor Co. | ||||||
| Tesla Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Automobiles & Components | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits fluctuations over the five-year period. Initial values demonstrate a decrease followed by an increase, then a subsequent decline, and finally a rise again. A detailed examination of the ratio’s behavior and its underlying components reveals specific patterns.
- Enterprise Value (EV)
- Enterprise Value decreased from US$164,511 million in 2021 to US$142,368 million in 2022, representing a contraction. It then experienced a modest increase to US$143,220 million in 2023, followed by a more substantial rise to US$154,903 million in 2024. The most significant increase occurred between 2024 and 2025, reaching US$182,742 million. This suggests growing overall firm value over the period, particularly in the latter years.
- Free Cash Flow to the Firm (FCFF)
- Free Cash Flow to the Firm increased consistently from US$10,047 million in 2021 to US$14,555 million in 2023. However, FCFF decreased to US$10,071 million in 2024, before rebounding significantly to US$18,063 million in 2025. This indicates volatility in the firm’s cash generating ability, with a strong recovery in the most recent year.
- EV/FCFF Ratio
- The EV/FCFF ratio began at 16.37 in 2021, then decreased substantially to 11.80 in 2022, and further to 9.84 in 2023. This decline suggests the firm was becoming more attractive relative to its cash flow generation. However, the ratio increased to 15.38 in 2024, coinciding with the decrease in FCFF. The ratio then decreased to 10.12 in 2025, despite the substantial increase in FCFF, indicating that the growth in Enterprise Value outpaced the growth in Free Cash Flow to the Firm.
The interplay between Enterprise Value and Free Cash Flow to the Firm results in a dynamic EV/FCFF ratio. While the firm demonstrated increasing cash flow generation through 2023, the ratio’s movement is also heavily influenced by changes in Enterprise Value. The recent increase in Enterprise Value, coupled with the recovery in FCFF, suggests a complex valuation scenario requiring further investigation.