IQVIA Holdings Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to IQVIA Holdings Inc.	1,091)	966)	279)	191)	259)
Net income attributable to non-controlling interests	—)	5)	29)	36)	25)
Net noncash charges	1,253)	1,291)	1,192)	1,171)	1,076)
Changes in operating assets and liabilities	(84)	680)	459)	19)	(106)
Net cash provided by operating activities	2,260)	2,942)	1,959)	1,417)	1,254)
Interest paid, net, net of tax¹	307)	293)	322)	282)	326)
Acquisition of property, equipment and software	(674)	(640)	(616)	(582)	(459)
Right-of-use assets obtained in exchange for finance lease obligations	(54)	(44)	(119)	—)	—)
Free cash flow to the firm (FCFF)	1,839)	2,551)	1,546)	1,117)	1,121)

Based on: 10-K (reporting date: 2022-12-31), 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).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the IQVIA Holdings Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	IQVIA Holdings Inc. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

IQVIA Holdings Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	19.08%	14.45%	19.30%	32.95%	17.99%
Interest Paid, Net of Tax
Interest paid, net, before tax	379)	343)	399)	421)	398)
Less: Interest paid, net, tax²	72)	50)	77)	139)	72)
Interest paid, net, net of tax	307)	293)	322)	282)	326)

Based on: 10-K (reporting date: 2022-12-31), 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).

¹ See details »

² 2022 Calculation
Interest paid, net, tax = Interest paid, net × EITR
= 379 × 19.08% = 72

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IQVIA Holdings Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	44,519)
Free cash flow to the firm (FCFF)	1,839)
Valuation Ratio
EV/FCFF	24.21
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	14.19
Amgen Inc.	23.51
Bristol-Myers Squibb Co.	8.47
Danaher Corp.	38.45
Eli Lilly & Co.	676.02
Gilead Sciences Inc.	12.52
Johnson & Johnson	19.05
Merck & Co. Inc.	38.48
Pfizer Inc.	33.25
Regeneron Pharmaceuticals Inc.	25.38
Thermo Fisher Scientific Inc.	30.48
Zoetis Inc.	44.71
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	21.05
EV/FCFF, Industry
Health Care	19.92

Based on: 10-K (reporting date: 2022-12-31).

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.

IQVIA Holdings Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	53,832)	55,061)	47,884)	42,823)	38,267)
Free cash flow to the firm (FCFF)²	1,839)	2,551)	1,546)	1,117)	1,121)
Valuation Ratio
EV/FCFF³	29.28	21.58	30.97	38.33	34.12
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	12.15	13.18	13.95	11.60	—
Amgen Inc.	16.01	15.82	14.51	16.05	—
Bristol-Myers Squibb Co.	13.87	10.52	11.63	23.39	—
Danaher Corp.	25.74	28.25	30.66	37.11	—
Eli Lilly & Co.	59.14	38.37	39.01	36.26	—
Gilead Sciences Inc.	13.58	8.42	13.60	9.78	—
Johnson & Johnson	23.80	21.25	20.75	19.31	—
Merck & Co. Inc.	19.09	23.27	34.12	20.46	—
Pfizer Inc.	9.15	8.40	21.74	19.44	—
Regeneron Pharmaceuticals Inc.	17.96	9.81	25.74	19.54	—
Thermo Fisher Scientific Inc.	31.61	33.14	26.14	28.88	—
Zoetis Inc.	54.71	49.22	43.54	47.27	—
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	18.37	16.44	20.25	19.59	—
EV/FCFF, Industry
Health Care	17.99	17.44	18.06	18.43	—

Based on: 10-K (reporting date: 2022-12-31), 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).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 53,832 ÷ 1,839 = 29.28

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	IQVIA Holdings Inc. EV/FCFF ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

IQVIA Holdings Inc. (NYSE:IQV)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical