Microsoft Excel LibreOffice Calc

Kimberly-Clark Corp. (NYSE:KMB)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Kimberly-Clark Corp., FCFF calculation

US$ in millions

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12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Kimberly-Clark Corporation 2,157  1,410  2,278  2,166  1,013 
Net income attributable to noncontrolling interests 40  35  41  53  53 
Net noncash charges 827  1,136  758  679  1,685 
Operating working capital (288) 389  (148) 334  (445)
Cash provided by operations 2,736  2,970  2,929  3,232  2,306 
Interest paid, net of tax1 200  212  253  219  212 
Capital spending (1,209) (877) (785) (771) (1,056)
Proceeds from dispositions of property 242  51  3  23  — 
Free cash flow to the firm (FCFF) 1,969  2,356  2,400  2,703  1,462 

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Kimberly-Clark Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Kimberly-Clark Corp.’s FCFF decreased from 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

Kimberly-Clark Corp., interest paid, net of tax calculation

US$ in millions

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12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 21.70% 19.60% 28.40% 30.60% 31.30%
Interest Paid, Net of Tax
Interest paid, before tax 255  264  354  315  308 
Less: Interest paid, tax2 55  52  101  96  96 
Interest paid, net of tax 200  212  253  219  212 

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

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2 2019 Calculation
Interest paid, tax = Interest paid × EITR
= 255 × 21.70% = 55

Enterprise Value to FCFF Ratio, Current

Kimberly-Clark Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 52,868 
Free cash flow to the firm (FCFF) 1,969 
Valuation Ratio
EV/FCFF 26.85
Benchmarks
EV/FCFF, Competitors1
Colgate-Palmolive Co. 22.94
Estée Lauder Cos. Inc. 32.24
Nike Inc. 27.63
EV/FCFF, Sector
Personal Goods 27.03
EV/FCFF, Industry
Consumer Goods 19.66

Based on: 10-K (filing date: 2020-02-13).

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

Kimberly-Clark Corp., historical EV/FCFF calculation, comparison to benchmarks

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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 57,004  46,202  46,232  50,665  52,995 
Free cash flow to the firm (FCFF)2 1,969  2,356  2,400  2,703  1,462 
Valuation Ratio
EV/FCFF3 28.96 19.61 19.26 18.75 36.26
Benchmarks
EV/FCFF, Competitors4
Colgate-Palmolive Co. 24.70 22.90 25.95 26.72 28.21
Estée Lauder Cos. Inc. 38.44 24.87 29.94 26.27 20.41
Nike Inc. 28.31 32.54 40.02 52.16 26.12
EV/FCFF, Sector
Personal Goods 29.11 26.22 28.50 29.36 27.32
EV/FCFF, Industry
Consumer Goods 21.42 21.88 28.99 28.26 25.53

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

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2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 57,004 ÷ 1,969 = 28.96

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. Kimberly-Clark Corp.’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.