Kimberly-Clark Corp., FCFF calculation

US$ in millions

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).

¹ See details »

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.

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

US$ in millions

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).

¹ See details »

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

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	56,298
Free cash flow to the firm (FCFF)	1,969
Valuation Ratio
EV/FCFF	28.60
Benchmarks
EV/FCFF, Competitors¹
Colgate-Palmolive Co.	23.86
Estée Lauder Cos. Inc.	37.28
Nike Inc.	31.92
EV/FCFF, Sector
Personal Goods	30.15
EV/FCFF, Industry
Consumer Goods	22.99

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.

Kimberly-Clark 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	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	24.20	24.18	35.76	35.50	29.46

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).

¹ See details »

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.

Kimberly-Clark Corp. (NYSE:KMB)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical