Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Illinois Tool Works 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 Illinois Tool Works Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Illinois Tool Works Inc. FCFF decreased from 2019 to 2020 and from 2020 to 2021. |
Interest Paid, Net of Tax
Illinois Tool Works 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
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 197 × 19.00% = 37
Enterprise Value to FCFF Ratio, Current
Illinois Tool Works Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 74,291) |
| Free cash flow to the firm (FCFF) | 2,429) |
| Valuation Ratio | |
| EV/FCFF | 30.59 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Boeing Co. | 21.76 |
| Caterpillar Inc. | 17.81 |
| Cummins Inc. | 15.83 |
| Eaton Corp. plc | 41.49 |
| General Electric Co. | 35.43 |
| Honeywell International Inc. | 29.00 |
| Lockheed Martin Corp. | 18.21 |
| RTX Corp. | 25.69 |
| EV/FCFF, Sector | |
| Capital Goods | 38.44 |
| EV/FCFF, Industry | |
| Industrials | 32.10 |
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
Illinois Tool Works 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 | 74,291) | 69,202) | 65,683) | 53,197) | 61,033) | |
| Free cash flow to the firm (FCFF)2 | 2,429) | 2,732) | 2,865) | 2,659) | 2,291) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 30.59 | 25.33 | 22.93 | 20.00 | 26.64 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 20.50 | 23.83 | 16.84 | — | — | |
| Cummins Inc. | 21.11 | 16.67 | 10.35 | — | — | |
| Eaton Corp. plc | 38.16 | 21.94 | 15.50 | — | — | |
| General Electric Co. | 56.53 | 32.34 | 15.85 | — | — | |
| Honeywell International Inc. | 25.22 | 26.49 | 21.13 | — | — | |
| Lockheed Martin Corp. | 13.92 | 14.64 | 21.21 | — | — | |
| RTX Corp. | 27.29 | 35.26 | 21.94 | — | — | |
| EV/FCFF, Sector | ||||||
| Capital Goods | 31.55 | 66.05 | 23.83 | — | — | |
| EV/FCFF, Industry | ||||||
| Industrials | 28.18 | 65.99 | 30.06 | — | — | |
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
= 74,291 ÷ 2,429 = 30.59
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. | Illinois Tool Works Inc. EV/FCFF ratio increased from 2019 to 2020 and from 2020 to 2021. |