Enterprise Value to FCFF (EV/FCFF)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Free Cash Flow to The Firm (FCFF)
Schlumberger Ltd., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the financial data reveals notable trends in cash flow generation over the observed five-year period. Operating cash flow demonstrates a general upward trajectory with some fluctuations. Specifically, cash generated from operating activities increased significantly from 2,944 million USD in 2020 to 4,651 million USD in 2021, followed by a decline to 3,720 million USD in 2022. Subsequently, a strong recovery is observed with cash flow peaking at 6,637 million USD in 2023, and then stabilizing at 6,602 million USD in 2024. This pattern indicates operational resilience and potentially effective management of working capital and operational efficiency in recent years.
Free cash flow to the firm (FCFF) mirrors the broad trend in operating cash flow but at lower absolute values, reflecting capital expenditures and other investments deducted from operating cash flows. FCFF increased substantially from 1,980 million USD in 2020 to 3,451 million USD in 2021, then experienced a sharp decline to 1,879 million USD in 2022. Following this, FCFF recovered to 4,445 million USD in 2023 and maintained a similar level at 4,403 million USD in 2024. This recovery and stabilization highlight the company's ability to generate cash not only from operations but also after necessary capital investments, suggesting effective investment decisions and the ability to sustain value creation.
Overall, the data indicates strong cash flow performance, with a dip in 2022 followed by a robust rebound in subsequent years. The substantial increase in both operating cash flow and FCFF starting in 2023 suggests improved operational conditions and capital efficiency, contributing positively to the company’s financial flexibility.
Interest Paid, Net of Tax
Schlumberger Ltd., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited an increasing trend over the analyzed periods. Starting from a notably low rate of 7% at the end of 2020, it rose sharply to 19% in 2021. Following this initial surge, the tax rate stabilized around 18-19% from 2021 through 2024, indicating a return to a more consistent tax burden in recent years.
- Cash Paid for Interest, Net of Tax
- Cash paid for interest, net of tax, showed a gradual declining trend over the five-year span. Beginning at $556 million in 2020, the amount decreased to $454 million in 2021, representing the most significant year-on-year reduction. This was followed by minor fluctuations, with interest payments slightly increasing to $461 million in 2022, then decreasing again to $407 million in 2023, and finally rising marginally to $413 million in 2024. Overall, the data suggests an effort to reduce interest expenses, thereby potentially improving net income after tax impacts.
Enterprise Value to FCFF Ratio, Current
Schlumberger Ltd., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2024-12-31).
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
Schlumberger Ltd., historical EV/FCFF calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Enterprise Value (EV)
- The enterprise value displayed a significant upward trend from 44,665 million US dollars at the end of 2020 to a peak of 89,522 million in 2022. However, following this peak, EV decreased notably over the subsequent two years, falling to 66,942 million by the end of 2024. This pattern indicates a period of expansion followed by a contraction or market revaluation.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow showed variability over the time horizon. It increased from 1,980 million US dollars in 2020 to 3,451 million in 2021 but then declined substantially to 1,879 million by the end of 2022. Nevertheless, from 2022 to 2023, FCFF rebounded markedly to 4,445 million and remained relatively stable into 2024, closing at 4,403 million. This suggests operational cash generation recovered strongly after a temporary dip.
- EV to FCFF Ratio
- The EV/FCFF ratio revealed considerable fluctuations, reflecting the movements in both enterprise value and free cash flow. Starting at 22.56 in 2020, it decreased to 19.47 in 2021 before sharply increasing to 47.65 in 2022. This spike likely corresponds to the simultaneous peak in EV and dip in FCFF observed in that year. Subsequently, the ratio declined significantly to 18.65 in 2023 and further to 15.2 in 2024, indicating an improved valuation multiple relative to free cash flow and potentially better market conditions or company performance.
- Summary of Trends
- Overall, the data reflect a cycle of growth, peak, and correction within the enterprise value from 2020 through 2024. Free cash flow experienced a trough in 2022 but ultimately recovered to higher levels by 2023 and 2024. The volatility in the EV/FCFF ratio mirrors these underlying changes, with a notable valuation premium in 2022 giving way to more conservative multiples subsequently. These trends suggest the firm encountered challenges impacting cash generation and market valuation in 2022 but managed to rebound effectively in the following years.