Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Mastercard Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Mastercard Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Mastercard Inc. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Interest Paid, Net of Tax
Mastercard Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2 2021 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 399 × 15.70% = 63
Enterprise Value to FCFF Ratio, Current
Mastercard Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 345,977 |
| Free cash flow to the firm (FCFF) | 8,985 |
| Valuation Ratio | |
| EV/FCFF | 38.50 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Accenture PLC | 23.19 |
| Adobe Inc. | 29.70 |
| International Business Machines Corp. | 13.91 |
| Intuit Inc. | 43.01 |
| Microsoft Corp. | 34.16 |
| Oracle Corp. | 35.71 |
| PayPal Holdings Inc. | 14.29 |
| Salesforce Inc. | 34.69 |
| ServiceNow Inc. | 54.97 |
| Visa Inc. | 29.27 |
| EV/FCFF, Sector | |
| Software & Services | 30.88 |
| EV/FCFF, Industry | |
| Information Technology | 28.85 |
Based on: 10-K (reporting date: 2021-12-31).
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
Mastercard Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 365,060 | 338,628 | 341,613 | 222,600 | 177,425 | |
| Free cash flow to the firm (FCFF)2 | 8,985 | 6,773 | 7,620 | 5,844 | 5,229 | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 40.63 | 50.00 | 44.83 | 38.09 | 33.93 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Accenture PLC | 24.76 | 17.90 | 18.49 | 17.18 | 19.43 | |
| Adobe Inc. | 33.61 | 40.43 | 40.48 | 31.36 | 33.45 | |
| International Business Machines Corp. | 13.10 | 9.35 | 12.86 | 12.27 | 12.20 | |
| Intuit Inc. | 48.64 | 37.90 | 33.30 | 27.69 | 25.66 | |
| Microsoft Corp. | 38.37 | 33.99 | 26.37 | 23.99 | 15.60 | |
| Oracle Corp. | 16.36 | 14.99 | 14.03 | 11.11 | 15.07 | |
| PayPal Holdings Inc. | 19.26 | 52.80 | 28.53 | 16.81 | 36.26 | |
| Salesforce Inc. | 44.91 | 39.63 | 41.21 | 40.68 | 33.77 | |
| ServiceNow Inc. | 60.36 | 84.56 | 73.46 | 75.66 | 56.67 | |
| Visa Inc. | 28.71 | 44.35 | 31.67 | 25.49 | 29.33 | |
| EV/FCFF, Sector | ||||||
| Software & Services | 31.52 | 31.00 | 25.98 | 22.18 | 19.51 | |
| EV/FCFF, Industry | ||||||
| Information Technology | 28.12 | 26.14 | 21.26 | 17.95 | 18.37 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 365,060 ÷ 8,985 = 40.63
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. | Mastercard Inc. EV/FCFF ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |