Microsoft Excel LibreOffice Calc

Kimberly-Clark Corp. (KMB)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Kimberly-Clark Corp., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income attributable to Kimberly-Clark Corporation 1,410  2,278  2,166  1,013  1,526 
Net income attributable to noncontrolling interests 35  41  53  53  69 
Net noncash charges 1,136  758  679  1,685  1,426 
(Increase) decrease in operating working capital 389  (148) 334  (445) (176)
Cash provided by operations 2,970  2,929  3,232  2,306  2,845 
Interest paid, net of tax1 212  253  219  212  186 
Capital spending (877) (785) (771) (1,056) (1,039)
Proceeds from dispositions of property 51  3  23  —  — 
Free cash flow to the firm (FCFF) 2,356  2,400  2,703  1,462  1,992 

Based on: 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), 10-K (filing date: 2015-02-18).

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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 2016 to 2017 and from 2017 to 2018.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Effective Income Tax Rate (EITR)
EITR1 19.60% 28.40% 30.60% 31.30% 38.00%
Interest Paid, Net of Tax
Interest paid, before tax 264  354  315  308  300 
Less: Interest paid, tax2 52  101  96  96  114 
Interest paid, net of tax 212  253  219  212  186 

Based on: 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), 10-K (filing date: 2015-02-18).

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2 2018 Calculation
Interest paid, tax = Interest paid × EITR
= 264 × 19.60% = 52

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) 54,087 
Free cash flow to the firm (FCFF) 2,356 
Valuation Ratio
EV/FCFF 22.95
Benchmarks
EV/FCFF, Competitors1
Colgate-Palmolive Co. 23.02
Estée Lauder Cos. Inc. 38.61
Nike Inc. 31.64
EV/FCFF, Sector
Personal Goods 31.62
EV/FCFF, Industry
Consumer Goods 25.20

Based on: 10-K (filing date: 2019-02-07).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 46,202  46,232  50,665  52,995  47,260 
Free cash flow to the firm (FCFF)2 2,356  2,400  2,703  1,462  1,992 
Valuation Ratio
EV/FCFF3 19.61 19.26 18.75 36.26 23.72
Benchmarks
EV/FCFF, Competitors4
Colgate-Palmolive Co. 22.90 25.95 26.72 28.21 26.21
Estée Lauder Cos. Inc. 24.87 29.94 26.27 20.41 27.37
Nike Inc. 32.54 40.02 52.16 26.12 31.87
EV/FCFF, Sector
Personal Goods 26.22 28.50 29.36 27.32 27.12
EV/FCFF, Industry
Consumer Goods 21.83 28.87 28.55 25.48 24.43

Based on: 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), 10-K (filing date: 2015-02-18).

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2 See details »

3 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 46,202 ÷ 2,356 = 19.61

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 2016 to 2017 and from 2017 to 2018.