Home Depot Inc., FCFF calculation

USD $ in millions

	12 months ended	Jan 28, 2018	Jan 29, 2017	Jan 31, 2016	Feb 1, 2015	Feb 2, 2014	Feb 3, 2013
	Net earnings
	Net noncash charges
	Changes in assets and liabilities, net of acquisition effects
	Net cash provided by operating activities
	Cash paid for interest, net of interest capitalized, net of tax¹
	Interest capitalized, net of tax²
	Capital expenditures, net of non-cash capital expenditures
	Proceeds from sales of property and equipment
	Non-cash capital expenditures
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Home Depot Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Home Depot Inc.’s FCFF increased from 2016 to 2017 and from 2017 to 2018.

Home Depot Inc., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Jan 28, 2018	Jan 29, 2017	Jan 31, 2016	Feb 1, 2015	Feb 2, 2014	Feb 3, 2013
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Cash paid for interest, net of interest capitalized, before tax
	Less: Cash paid for interest, net of interest capitalized, tax²
	Cash paid for interest, net of interest capitalized, net of tax
	Interest Costs Capitalized, Net of Tax
	Interest capitalized, before tax
	Less: Interest capitalized, tax³
	Interest capitalized, net of tax

2018 Calculations

² Cash paid for interest, net of interest capitalized, tax = Cash paid for interest, net of interest capitalized × EITR
= hidden × hidden = hidden

³ Interest capitalized, tax = Interest capitalized × EITR
= hidden × hidden = hidden

Home Depot Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Amazon.com Inc.
Costco Wholesale Corp.
eBay Inc.
Lowe’s Cos. Inc.
Netflix Inc.
Target Corp.
TJX Cos. Inc.
Walmart Inc.
EV/FCFF, Sector
General Retailers
EV/FCFF, Industry
Consumer Services

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Home Depot Inc., historical EV/FCFF calculation, comparison to benchmarks

		Jan 28, 2018	Jan 29, 2017	Jan 31, 2016	Feb 1, 2015	Feb 2, 2014	Feb 3, 2013
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	EV/FCFF, Sector
	General Retailers
	EV/FCFF, Industry
	Consumer Services

2018 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Home Depot Inc.’s EV/FCFF ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

	Home Depot Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Home Depot Inc. (HD)

Enterprise Value to FCFF (EV/FCFF)