Stock Analysis on Net

HCA Healthcare Inc. (NYSE:HCA)

This company has been moved to the archive! The financial data has not been updated since May 3, 2022.

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

HCA Healthcare Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income attributable to HCA Healthcare, Inc. 6,956  3,754  3,505  3,787  2,216 
Net income attributable to noncontrolling interests 765  633  640  602  527 
Net noncash charges 1,741  3,567  3,545  2,339  2,979 
Increase (decrease) in cash from operating assets and liabilities (503) 1,278  (88) 33  (296)
Net cash provided by operating activities 8,959  9,232  7,602  6,761  5,426 
Interest payments, net of tax1 1,179  1,298  1,512  1,407  1,197 
Purchase of property and equipment (3,577) (2,835) (4,158) (3,573) (3,015)
Free cash flow to the firm (FCFF) 6,561  7,695  4,956  4,595  3,608 

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

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 21.50% 19.20% 21.00% 19.30% 29.60%
Interest Paid, Net of Tax
Interest payments, before tax 1,502  1,607  1,914  1,744  1,700 
Less: Interest payments, tax2 323  309  402  337  503 
Interest payments, net of tax 1,179  1,298  1,512  1,407  1,197 

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
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

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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 22.29
Bristol-Myers Squibb Co. 11.43
Cigna Corp. 16.60
CVS Health Corp. 10.42
Danaher Corp. 32.12
Elevance Health Inc. 13.67
Intuitive Surgical Inc. 46.64
Medtronic PLC 21.58
UnitedHealth Group Inc. 24.97
EV/FCFF, Sector
Health Care Equipment & Services 19.05
EV/FCFF, Industry
Health Care 17.22

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

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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 26.46 23.86
Bristol-Myers Squibb Co. 10.52 11.63 23.39 15.74 24.15
Cigna Corp. 14.21 9.17 10.32 29.92 12.68
CVS Health Corp. 10.30 9.42 12.30 17.89 14.20
Danaher Corp. 28.25 30.66 37.11 25.21 25.94
Elevance Health Inc. 12.74 6.04 12.73 24.58 13.91
Intuitive Surgical Inc. 56.47 76.70 54.58 57.79 47.07
Medtronic PLC 33.84 21.43 22.07 27.88 21.24
UnitedHealth Group Inc. 22.21 15.82 17.51 18.63 18.98
EV/FCFF, Sector
Health Care Equipment & Services 18.42 15.79 18.90 22.26 19.81
EV/FCFF, Industry
Health Care 16.27 18.19 18.56 19.03 18.52

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
= 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.