Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Raytheon Co., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 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).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Raytheon Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Raytheon Co. FCFF increased from 2017 to 2018 and from 2018 to 2019. |
Interest Paid, Net of Tax
Raytheon Co., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 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).
2 2019 Calculation
Cash paid for interest on commercial paper and long-term debt, tax = Cash paid for interest on commercial paper and long-term debt × EITR
= 193 × 16.50% = 32
Enterprise Value to FCFF Ratio, Current
Raytheon Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 64,443) |
| Free cash flow to the firm (FCFF) | 3,661) |
| Valuation Ratio | |
| EV/FCFF | 17.60 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Boeing Co. | 21.30 |
| Caterpillar Inc. | 17.82 |
| Cummins Inc. | 15.82 |
| Eaton Corp. plc | 42.24 |
| General Electric Co. | 34.68 |
| Honeywell International Inc. | 28.81 |
| Lockheed Martin Corp. | 18.18 |
| RTX Corp. | 25.62 |
| EV/FCFF, Sector | |
| Capital Goods | 28.42 |
| EV/FCFF, Industry | |
| Industrials | 37.74 |
Based on: 10-K (reporting date: 2019-12-31).
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
Raytheon Co., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 64,443) | 52,515) | 62,981) | 46,438) | 40,176) | |
| Free cash flow to the firm (FCFF)2 | 3,661) | 2,787) | 2,319) | 2,427) | 2,119) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 17.60 | 18.84 | 27.15 | 19.14 | 18.96 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 16.84 | — | — | — | — | |
| Cummins Inc. | 10.35 | — | — | — | — | |
| Eaton Corp. plc | 15.50 | — | — | — | — | |
| General Electric Co. | 15.85 | — | — | — | — | |
| Honeywell International Inc. | 21.13 | — | — | — | — | |
| Lockheed Martin Corp. | 21.21 | — | — | — | — | |
| RTX Corp. | 21.94 | — | — | — | — | |
| EV/FCFF, Sector | ||||||
| Capital Goods | 23.83 | — | — | — | — | |
| EV/FCFF, Industry | ||||||
| Industrials | 30.06 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 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).
3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 64,443 ÷ 3,661 = 17.60
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. | Raytheon Co. EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019. |