Lowe’s Cos. Inc., FCFF calculation

USD $ in millions

	12 months ended	Feb 2, 2018	Feb 3, 2017	Jan 29, 2016	Jan 30, 2015	Jan 31, 2014	Feb 1, 2013
	Net earnings
	Net noncash charges
	Changes in operating assets and liabilities
	Net cash provided by operating activities
	Cash paid for interest, net of amount capitalized, net of tax¹
	Interest capitalized, net of tax²
	Capital expenditures
	Non-cash property acquisitions, including assets acquired under capital lease
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Lowe’s Cos. Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Lowe’s Cos. Inc.’s FCFF increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Lowe’s Cos. Inc., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Feb 2, 2018	Feb 3, 2017	Jan 29, 2016	Jan 30, 2015	Jan 31, 2014	Feb 1, 2013
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Cash paid for interest, net of amount capitalized, before tax
	Less: Cash paid for interest, net of amount capitalized, tax²
	Cash paid for interest, net of amount capitalized, net of tax
	Interest Costs Capitalized, Net of Tax
	Interest capitalized, before tax
	Less: Interest capitalized, tax³
	Interest capitalized, net of tax

2018 Calculations

² Cash paid for interest, net of amount capitalized, tax = Cash paid for interest, net of amount capitalized × EITR
= hidden × hidden = hidden

³ Interest capitalized, tax = Interest capitalized × EITR
= hidden × hidden = hidden

Lowe’s Cos. Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Amazon.com Inc.
Costco Wholesale Corp.
eBay Inc.
Home Depot Inc.
Netflix Inc.
Target Corp.
TJX Cos. Inc.
Walmart Inc.
EV/FCFF, Sector
General Retailers
EV/FCFF, Industry
Consumer Services

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Lowe’s Cos. Inc., historical EV/FCFF calculation, comparison to benchmarks

		Feb 2, 2018	Feb 3, 2017	Jan 29, 2016	Jan 30, 2015	Jan 31, 2014	Feb 1, 2013
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Netflix Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	EV/FCFF, Sector
	General Retailers
	EV/FCFF, Industry
	Consumer Services

2018 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Lowe’s Cos. Inc.’s EV/FCFF ratio declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

	Lowe’s Cos. Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Lowe’s Cos. Inc. (LOW)

Enterprise Value to FCFF (EV/FCFF)