Enterprise Value to FCFF (EV/FCFF)
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Free Cash Flow to The Firm (FCFF)
Procter & Gamble Co., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
- Operating activities
- The cash flows from operating activities demonstrate a fluctuating pattern over the six-year period. Starting at $17,403 million in 2020, there was an increase to $18,371 million in 2021, representing positive growth. However, in 2022 and 2023, the values declined to $16,723 million and $16,848 million respectively, indicating a period of reduced cash generation from core operations. The figure rebounded notably in 2024, reaching $19,846 million, the highest value within the period, before declining again to $17,817 million in 2025. Overall, the trend suggests volatility with a peak in 2024, but with operating cash flow not sustaining the highest levels consistently.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm exhibits a similar fluctuating trajectory across the examined years. Beginning at $14,689 million in 2020, the FCFF increased to $16,017 million in 2021, reflecting improved free cash generation. A decline followed in 2022 and 2023, with values dropping to $13,938 million and $14,365 million, respectively, signaling a contraction in the residual cash available after operations and capital expenditures. Thereafter, the FCFF showed a significant increase to $17,225 million in 2024, matching the resurgence observed in operating activities cash flow. However, in 2025, it decreased once again to $14,758 million. This variability highlights challenges in maintaining consistent growth in free cash flow but indicates capacity for recovery in certain years.
- Comparative observations
- The close correlation between operating activities cash flow and free cash flow to the firm suggests that capital expenditure patterns remained relatively stable or followed operational cash flow trends, as major deviations would have caused divergence between these two metrics. Both financial measures experienced dips during 2022 and 2023, followed by notable recoveries in 2024, but neither sustained peak performance into 2025. These fluctuations could be attributed to external market conditions, changes in working capital management, or investment activities impacting cash generation and utilization.
Interest Paid, Net of Tax
Procter & Gamble Co., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
2 2025 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= × =
- Effective income tax rate (EITR)
- The effective income tax rate exhibits a generally upward trend over the analyzed periods. It began at 17.2% in mid-2020, showing a slight increase to 18.5% in mid-2021. Although there was a minor reduction to 17.8% in mid-2022, the rate increased consistently thereafter, reaching 19.7% in mid-2023 and continuing to rise slightly to 20.2% and 20.3% in mid-2024 and mid-2025, respectively. This pattern indicates a gradual increase in the tax burden on pre-tax income over time.
- Cash payments for interest, net of tax
- Cash payments for interest, net of tax, show a fluctuating but overall increasing trend. Starting at $359 million in mid-2020, the value rose to $433 million in mid-2021, followed by a decline to $371 million in mid-2022. Thereafter, there was a significant increase to $579 million in mid-2023, with further growth to $701 million and $714 million in mid-2024 and mid-2025, respectively. This suggests either an increase in outstanding debt levels, rising interest rates, or a combination of both, leading to higher net interest expenses over the period.
Enterprise Value to FCFF Ratio, Current
Procter & Gamble Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Industry | |
| Consumer Staples | |
Based on: 10-K (reporting date: 2025-06-30).
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
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
- Enterprise Value (EV)
- The enterprise value demonstrates a general upward trajectory from 2020 through 2024, increasing from approximately $349.7 billion to $419.7 billion. However, in 2025, there is a notable decline to approximately $379.1 billion, indicating a reversal in the previous growth trend.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm exhibits some fluctuations over the observed period. Beginning at $14.7 billion in 2020, it rises steadily to a peak of $17.2 billion in 2024. The 2025 value shows a decline to $14.8 billion, nearly reverting to the 2020 level, suggesting variability in cash generation capacity.
- EV/FCFF Ratio
- The EV/FCFF ratio declines from 23.81 in 2020 to 22.86 in 2021, implying a relatively more favorable valuation compared to free cash flow. This ratio then increases progressively, peaking at 27.39 in 2023, before decreasing again to 24.36 in 2024 and then slightly increasing to 25.69 in 2025. These fluctuations indicate varying market perceptions of valuation relative to free cash flow throughout the period.
- Summary
- Overall, the data depict growth in enterprise value and free cash flow until 2024, accompanied by a variable EV/FCFF ratio suggesting changing valuation dynamics. The subsequent declines in both enterprise value and FCFF in 2025 point toward a potentially less favorable financial position or market outlook in that year.