Stock Analysis on Net
Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel LibreOffice Calc

Free Cash Flow to The Firm (FCFF)

Procter & Gamble Co., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Net earnings attributable to Procter & Gamble 14,306  13,027  3,897  9,750  15,326  10,508 
Net earnings attributable to noncontrolling interests 46  76  69  111  85  96 
Net noncash charges 3,648  3,090  10,908  1,986  (2,215) 3,191 
Change in operating assets and liabilities 371  1,210  368  3,020  (443) 1,640 
Operating activities 18,371  17,403  15,242  14,867  12,753  15,435 
Cash payments for interest, net of tax1 433  359  325  415  398  427 
Capital expenditures (2,787) (3,073) (3,347) (3,717) (3,384) (3,314)
Proceeds from asset sales 42  30  394  269  571  432 
Free cash flow to the firm (FCFF) 16,059  14,719  12,614  11,834  10,338  12,980 

Based on: 10-K (filing date: 2021-08-06), 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Procter & Gamble Co.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Procter & Gamble Co.’s FCFF increased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

Procter & Gamble Co., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Effective Income Tax Rate (EITR)
EITR1 18.50% 17.20% 34.70% 21.50% 23.10% 25.00%
Interest Paid, Net of Tax
Cash payments for interest, before tax 531  434  497  529  518  569 
Less: Cash payments for interest, tax2 98  75  172  114  120  142 
Cash payments for interest, net of tax 433  359  325  415  398  427 

Based on: 10-K (filing date: 2021-08-06), 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09).

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2 2021 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= 531 × 18.50% = 98

Enterprise Value to FCFF Ratio, Current

Procter & Gamble Co., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 366,715 
Free cash flow to the firm (FCFF) 16,059 
Valuation Ratio
EV/FCFF 22.84
Benchmarks
EV/FCFF, Competitors1
Colgate-Palmolive Co. 20.59
Estée Lauder Cos. Inc. 36.94
EV/FCFF, Sector
Household & Personal Products 27.62
EV/FCFF, Industry
Consumer Staples 25.71

Based on: 10-K (filing date: 2021-08-06).

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

Procter & Gamble Co., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 366,108  349,722  307,076  226,602  251,228  248,416 
Free cash flow to the firm (FCFF)2 16,059  14,719  12,614  11,834  10,338  12,980 
Valuation Ratio
EV/FCFF3 22.80 23.76 24.34 19.15 24.30 19.14
Benchmarks
EV/FCFF, Competitors4
Colgate-Palmolive Co. — 21.37 24.70 22.90 25.95 26.72
Estée Lauder Cos. Inc. 39.49 46.44 38.44 24.87 29.94 26.27
EV/FCFF, Sector
Household & Personal Products — 25.32 25.90 20.53 25.16 20.88
EV/FCFF, Industry
Consumer Staples — 22.75 22.90 19.98 21.10 22.69

Based on: 10-K (filing date: 2021-08-06), 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09).

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2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 366,108 ÷ 16,059 = 22.80

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. Procter & Gamble Co.’s EV/FCFF ratio decreased from 2019 to 2020 and from 2020 to 2021.