Enterprise Value to FCFF (EV/FCFF)
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General Motors Co. pages available for free this week:
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Price to Earnings (P/E) since 2010
- Price to Sales (P/S) 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1, 2 See details »
The analysis of the financial data reveals several notable trends over the five-year period. The net cash provided by operating activities shows some fluctuations but generally remains strong, with a peak in the year ending December 31, 2023, indicating an improvement in the company's operational cash generation during that period. The value increases from 16,670 million USD in 2020 to a high of 20,930 million USD in 2023 before slightly decreasing to 20,129 million USD in 2024.
Free cash flow to the firm (FCFF) exhibits a more variable trend. It starts at 12,548 million USD in 2020, declines to 10,047 million USD in 2021, then recovers to 12,063 million USD in 2022 and rises further to 14,555 million USD in 2023. However, in 2024, FCFF declines significantly to 10,071 million USD. This decrease contrasts with the relatively strong operating cash flow of 2024, suggesting potential changes in capital expenditures, working capital, or other investing activities that may have impacted free cash flow negatively in that year.
- Operating Cash Flow
- Generally stable and strong, with a pronounced peak in 2023, reflecting robust operational performance.
- Free Cash Flow to the Firm (FCFF)
- More volatile throughout the period, with a dip in 2021, recovery through 2023, and a sharp decline in 2024, indicating increased capital investments or changes in other cash outflows.
- Comparison and Insight
- The divergence in 2024 between strong operating cash flow and decreased free cash flow warrants attention. This may imply that, despite solid core business cash generation, investments or financing activities could be impacting available cash flow to the firm negatively. Monitoring the components beyond operating cash flow will be essential to understand the drivers of these fluctuations.
Interest Paid, Net of Tax
General Motors Co., interest paid, net of tax calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
2 2024 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= × =
3 2024 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate shows a fluctuating trend over the five-year period. Starting at 23.91% in 2020, it increased slightly to 24.28% in 2021 before experiencing a significant decline to 17.55% in 2022. The rate then dropped sharply to its lowest point at 5.67% in 2023, followed by a rebound to 19.37% in 2024. This variability suggests changes in tax planning, tax regulations, or profitability structures impacting the company's tax obligations.
- Cash Paid for Interest, Net of Amounts Capitalized, Net of Tax
- Cash paid for interest demonstrates a notable overall increase across the period, with some fluctuations. In 2020, the amount was 3,012 million USD, which decreased to 2,577 million USD in 2021. It then rose again to 2,973 million USD in 2022. A large upward jump occurred in 2023, with interest payments increasing to 5,202 million USD, remaining relatively stable in 2024 at 4,985 million USD. The significant increase in 2023 and sustained high level in 2024 may indicate increased debt levels or higher interest rates impacting financing costs.
- Interest Capitalized, Net of Tax
- Interest capitalized data is only available for the year ending 2024, showing a value of 173 million USD. The absence of earlier data prevents trend analysis, but the presence of capitalized interest in 2024 may reflect investments in long-term assets or projects financed through debt where interest costs are added to the asset base.
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: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The financial data reveals a variation in the enterprise value (EV) of the company over the five-year period. Initially, the EV remained relatively stable from 2020 to 2021, showing a slight decrease in 2022, followed by a marginal increase in 2023, and then a more pronounced rise in 2024. This pattern suggests some fluctuations in market valuation or changes in the company's capital structure or investor perceptions.
Free cash flow to the firm (FCFF) exhibits a different trend. It declined from 2020 to 2021, rebounded significantly in 2022, and further increased in 2023 before dropping noticeably in 2024. The sharp increase in FCFF during 2022 and 2023 could indicate improved operational efficiency, better cash management, or favorable business conditions during those years. The decrease in 2024 warrants attention as it may signal challenges in generating cash or higher expenditures.
The EV/FCFF ratio, which provides an indication of valuation relative to cash flow generation, demonstrates volatility. Starting at 13.12 in 2020, the ratio peaked at 16.37 in 2021, then declined steadily through 2023, reaching a low of 9.84, and surged again to 15.38 in 2024. This ratio's movement reflects the interplay between changes in enterprise value and free cash flow. The high ratio in 2021 suggests pricing at a premium relative to cash flow, while the low in 2023 could imply more attractive valuation or improved cash generation. The increase in 2024 indicates a shift back toward a higher valuation relative to the firm's cash flow capabilities.
Overall, the data indicates periods of relative stability and growth in enterprise value and cash flows, interspersed with declines that affect valuation multiples. The trends highlight areas where performance improvements or market perceptions have fluctuated, suggesting a need for continued monitoring of the firm's cash flow generation and valuation metrics in future periods.