Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
HCA Healthcare Inc., FCFF calculation
US$ in millions
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).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the HCA Healthcare Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | HCA Healthcare Inc. FCFF increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Interest Paid, Net of Tax
HCA Healthcare Inc., interest paid, net of tax calculation
US$ in millions
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).
2 2021 Calculation
Interest payments, tax = Interest payments × EITR
= 1,502 × 21.50% = 323
Enterprise Value to FCFF Ratio, Current
HCA Healthcare Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 99,463) |
| Free cash flow to the firm (FCFF) | 6,561) |
| Valuation Ratio | |
| EV/FCFF | 15.16 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Abbott Laboratories | 34.30 |
| Cigna Group | 10.91 |
| CVS Health Corp. | 11.07 |
| Elevance Health Inc. | 15.10 |
| Humana Inc. | 8.12 |
| Intuitive Surgical Inc. | 169.71 |
| Medtronic PLC | 24.33 |
| Shockwave Medical Inc. | 72.58 |
| UnitedHealth Group Inc. | 17.45 |
| EV/FCFF, Sector | |
| Health Care Equipment & Services | 18.79 |
| EV/FCFF, Industry | |
| Health Care | 19.04 |
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.
Enterprise Value to FCFF Ratio, Historical
HCA Healthcare 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 millions) | ||||||
| Enterprise value (EV)1 | 109,659) | 91,822) | 85,468) | 82,972) | 69,421) | |
| Free cash flow to the firm (FCFF)2 | 6,561) | 7,695) | 4,956) | 4,595) | 3,608) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 16.71 | 11.93 | 17.25 | 18.06 | 19.24 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Abbott Laboratories | 23.47 | 36.94 | 33.05 | — | — | |
| Cigna Group | 14.17 | 9.16 | 10.24 | — | — | |
| CVS Health Corp. | 10.30 | 9.42 | 12.30 | — | — | |
| Elevance Health Inc. | 12.74 | 6.04 | 12.73 | — | — | |
| Humana Inc. | 42.03 | 7.92 | 8.46 | — | — | |
| Intuitive Surgical Inc. | 56.01 | 76.70 | 54.58 | — | — | |
| Medtronic PLC | 33.84 | 21.43 | 22.07 | 27.88 | — | |
| Shockwave Medical Inc. | 1,985.84 | — | — | — | — | |
| UnitedHealth Group Inc. | 22.21 | 15.82 | 17.51 | — | — | |
| EV/FCFF, Sector | ||||||
| Health Care Equipment & Services | 19.69 | 14.92 | 16.68 | — | — | |
| EV/FCFF, Industry | ||||||
| Health Care | 17.46 | 18.09 | 18.44 | — | — | |
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).
3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 109,659 ÷ 6,561 = 16.71
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. | HCA Healthcare Inc. EV/FCFF ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level. |