Free Cash Flow to The Firm (FCFF)
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
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Item | Description | The company |
---|---|---|
FCFF | Free cash flow to the firm is the cash flow available to the Royal Dutch Shell PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Royal Dutch Shell PLC FCFF decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
Interest Paid, Net of Tax
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × 13,584 ÷ 28,314 = 47.98%
2 2014 Calculation
Interest paid, tax = Interest paid × EITR
= 1,480 × 47.98% = 710
3 2014 Calculation
Interest capitalised, tax = Interest capitalised × EITR
= 757 × 47.98% = 363
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 209,386) |
Free cash flow to the firm (FCFF) | 22,921) |
Valuation Ratio | |
EV/FCFF | 9.14 |
Benchmarks | |
EV/FCFF, Competitors1 | |
Chevron Corp. | 15.84 |
ConocoPhillips | 17.80 |
Exxon Mobil Corp. | 14.42 |
Marathon Petroleum Corp. | 7.20 |
Occidental Petroleum Corp. | 12.50 |
Valero Energy Corp. | 7.31 |
Based on: 20-F (reporting date: 2014-12-31).
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
Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 209,386) | 259,612) | 230,560) | 249,613) | 242,298) | |
Free cash flow to the firm (FCFF)2 | 22,921) | 1,393) | 19,740) | 17,301) | 3,880) | |
Valuation Ratio | ||||||
EV/FCFF3 | 9.14 | 186.39 | 11.68 | 14.43 | 62.44 | |
Benchmarks | ||||||
EV/FCFF, Competitors4 | ||||||
Chevron Corp. | — | — | — | — | — | |
ConocoPhillips | — | — | — | — | — | |
Exxon Mobil Corp. | — | — | — | — | — | |
Marathon Petroleum Corp. | — | — | — | — | — | |
Occidental Petroleum Corp. | — | — | — | — | — | |
Valero Energy Corp. | — | — | — | — | — |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
3 2014 Calculation
EV/FCFF = EV ÷ FCFF
= 209,386 ÷ 22,921 = 9.14
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. | Royal Dutch Shell PLC EV/FCFF ratio increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |