TJX Cos. Inc., FCFF calculation

USD $ in thousands

	12 months ended	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Net income
	Net noncash charges
	Changes in assets and liabilities
	Net cash provided by operating activities
	Cash paid for interest on debt, net of tax¹
	Capitalized interest, net of tax²
	Property additions
	Build-to-suit lease obligation
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the TJX Cos. Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	TJX Cos. Inc.’s FCFF declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

TJX Cos. Inc., interest paid, net of tax calculation

USD $ in thousands

	12 months ended	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Cash paid for interest on debt, before tax
	Less: Cash paid for interest on debt, tax²
	Cash paid for interest on debt, net of tax
	Interest Costs Capitalized, Net of Tax
	Capitalized interest, before tax
	Less: Capitalized interest, tax³
	Capitalized interest, net of tax

2019 Calculations

² Cash paid for interest on debt, tax = Cash paid for interest on debt × EITR
= hidden × hidden = hidden

³ Capitalized interest, tax = Capitalized interest × EITR
= hidden × hidden = hidden

TJX Cos. Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in thousands)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Amazon.com Inc.
Costco Wholesale Corp.
eBay Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
Netflix Inc.
Target Corp.
Walmart Inc.
EV/FCFF, Sector
General Retailers
EV/FCFF, Industry
Consumer Services

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

TJX Cos. Inc., historical EV/FCFF calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in thousands)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	Walmart Inc.
	EV/FCFF, Sector
	General Retailers
	EV/FCFF, Industry
	Consumer Services

2019 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	TJX Cos. Inc.’s EV/FCFF ratio increased from 2017 to 2018 but then slightly declined from 2018 to 2019 not reaching 2017 level.

	TJX Cos. Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

TJX Cos. Inc. (TJX)

Enterprise Value to FCFF (EV/FCFF)