Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
LyondellBasell Industries N.V. pages available for free this week:
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2011
- Return on Equity (ROE) since 2011
- Debt to Equity since 2011
- Price to Earnings (P/E) since 2011
- Price to Operating Profit (P/OP) since 2011
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to LyondellBasell Industries N.V. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
LyondellBasell Industries N.V., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1, 2 See details »
The financial data reveals trends in liquidity and cash flow generation over the five-year period ending December 31, 2018.
- Net Cash Provided by Operating Activities
- This metric shows a declining trend from 2014 through 2017, beginning at 6,048 million US dollars and decreasing to 5,206 million by 2017. The year 2018 shows a slight recovery to 5,471 million. Overall, there is a moderate downward movement with a partial rebound in the final year.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow also trends downward from 2014, starting at 4,800 million US dollars and decreasing more sharply by 2016 to 3,617 million. There is a mild improvement in 2017 to 3,974 million, followed by a slight decrease in 2018 to 3,700 million. This indicates tightening cash availability after operations and investments, with some fluctuations but a general decline over time.
In summary, the data suggests a consistent reduction in operating cash inflows and free cash flow generation throughout most of the observed period, with minor improvements in the last two years. The overall pattern reflects potential challenges in cash management or operational efficiency that may warrant further analysis to identify causal factors.
Interest Paid, Net of Tax
LyondellBasell Industries N.V., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × ÷ =
2 2018 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= × =
3 2018 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate shows a relatively stable trend around 26-28% from 2014 to 2016, with values of 26.96%, 27.86%, and 26.49% respectively. However, there is a significant decline starting in 2017, reaching a low of 10.89% and slightly increasing to 11.54% in 2018. This marked decrease might suggest the impact of tax reforms or changes in the company's tax planning strategies during the latter years.
- Interest Paid, Net of Capitalized Interest, Net of Tax
- Interest payments, net of tax and capitalized interest, generally increased from 2014 to 2018. After a slight dip from $232 million in 2014 to $216 million in 2015, the figure rose to $230 million in 2016, and then showed a substantial increase to $297 million in 2017, staying close at $295 million in 2018. This upward trend indicates growing interest expenses, which could reflect increased borrowing or higher interest rates.
- Capitalized Interest, Net of Tax
- Capitalized interest amounts fluctuated over the period. Starting at $18 million in 2014, it decreased significantly to $8 million in 2015, then rose sharply to $24 million in 2016. It fell again to $18 million in 2017, followed by a notable rise to $40 million in 2018. The variability in capitalized interest suggests inconsistent investment activities or changes in capitalization policies.
Enterprise Value to FCFF Ratio, Current
LyondellBasell Industries N.V., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Linde plc | |
| Sherwin-Williams Co. | |
Based on: 10-K (reporting date: 2018-12-31).
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
LyondellBasell Industries N.V., historical EV/FCFF calculation, comparison to benchmarks
| 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 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
3 2018 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a fluctuating trend over the period. From 2014 to 2015, there was a notable decline from 47,425 million USD to 39,738 million USD. Subsequently, EV increased to 44,380 million USD in 2016 and peaked at 49,514 million USD in 2017. In 2018, the value again decreased significantly to 40,964 million USD. This pattern indicates volatility in the company's market valuation or perceived business worth over the years.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm demonstrated a generally decreasing trend with minor variations. Starting from 4,800 million USD in 2014, the FCFF slightly decreased to 4,626 million USD in 2015. A sharper decline occurred in 2016, dropping to 3,617 million USD. After a modest recovery to 3,974 million USD in 2017, the cash flow again diminished to 3,700 million USD in 2018. The overall decline suggests potential challenges in generating operating cash flow or higher capital expenditures impacting available cash.
- EV/FCFF Ratio
- The EV to FCFF ratio displayed notable oscillations within the timeframe. The ratio began at 9.88 in 2014 and decreased to 8.59 in 2015, reflecting a relatively more attractive valuation relative to cash flow at that time. However, from 2016 onwards, the ratio increased considerably, reaching 12.27 in 2016 and peaking at 12.46 in 2017, indicating that the enterprise value rose relative to free cash flow, potentially signaling overvaluation or decreased cash flow efficiency. In 2018, the ratio decreased to 11.07 but remained elevated compared to the initial years.
- Summary
- Overall, the data reveals a period marked by volatility in enterprise value and a downward trend in free cash flow generation. The rising EV/FCFF ratio in the latter years suggests market valuation increased faster than cash flow, potentially implying increased investor expectations or valuation risks. The decline in free cash flow may point to operational challenges or increased investments reducing liquidity. These trends warrant further investigation into underlying business factors and market conditions affecting the company's financial performance and valuation.