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Microsoft Excel LibreOffice Calc

International Business Machines Corp. (NYSE:IBM)


Enterprise Value to FCFF (EV/FCFF)

Intermediate level


Free Cash Flow to The Firm (FCFF)

International Business Machines Corp., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to IBM
Net income attributable to noncontrolling interest
Net noncash charges
Changes in operating assets and liabilities, net of acquisitions/divestitures
Net cash provided by operating activities
Interest paid on debt, net of tax1
Interest capitalized, net of tax2
Payments for property, plant and equipment
Proceeds from disposition of property, plant and equipment
Investment in software
Free cash flow to the firm (FCFF)

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the International Business Machines Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. International Business Machines Corp.’s FCFF decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Interest Paid, Net of Tax

International Business Machines Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1
Interest Paid, Net of Tax
Interest paid on debt, before tax
Less: Interest paid on debt, tax2
Interest paid on debt, net of tax
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax
Less: Interest capitalized, tax3
Interest capitalized, net of tax

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

1 See details »

2 2019 Calculation
Interest paid on debt, tax = Interest paid on debt × EITR
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3 2019 Calculation
Interest capitalized, tax = Interest capitalized × EITR
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Enterprise Value to FCFF Ratio, Current

International Business Machines Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
Adobe Inc.
Alphabet Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.
EV/FCFF, Sector
Software & Computer Services
EV/FCFF, Industry
Technology

Based on: 10-K (filing date: 2020-02-25).

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

International Business Machines Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1
Free cash flow to the firm (FCFF)2
Valuation Ratio
EV/FCFF3
Benchmarks
EV/FCFF, Competitors4
Adobe Inc.
Alphabet Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.
EV/FCFF, Sector
Software & Computer Services
EV/FCFF, Industry
Technology

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
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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. International Business Machines Corp.’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.