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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
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, 2 See details »
| 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
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).
2 2019 Calculation
Interest paid on debt, tax = Interest paid on debt × EITR
= × =
3 2019 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= × =
Enterprise Value to FCFF Ratio, Current
International Business Machines Corp., current EV/FCFF calculation, comparison to benchmarks
| 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
| 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).
3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
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. |