Enterprise Value to FCFF (EV/FCFF)
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Texas Pacific Land Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Free Cash Flow to The Firm (FCFF)
Texas Pacific Land Corp., FCFF calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-12-31).
The financial data reflects cash flow metrics over a five-year period, focusing on operating cash flow and free cash flow to the firm (FCFF).
- Cash Provided by Operating Activities
- There is notable volatility in operating cash flow throughout the period. Starting at approximately 343 million USD in 2019, there is a substantial decline to around 207 million USD in 2020. This is followed by a recovery in 2021, with cash flow increasing to roughly 265 million USD. The upward trend continues sharply into 2022, reaching a peak near 447 million USD, before experiencing a slight decrease to about 418 million USD in 2023. Overall, despite fluctuations, the operating cash flow demonstrates growth from the beginning to the end of the period.
- Free Cash Flow to the Firm (FCFF)
- FCFF exhibits a pattern closely aligned with the operating cash flow trend, reflecting strong correlation. Beginning at approximately 311 million USD in 2019, it declines alongside operating cash flow to roughly 202 million USD in 2020. A gradual recovery is observed in 2021 with an increase to about 251 million USD, followed by a significant rise to an apex of 428 million USD in 2022. There is a slight decrease in 2023 to approximately 403 million USD. This pattern suggests effective capital expenditure management allowing most operating cash flow to be translated into free cash flow.
In summary, the company experienced a downturn in operating and free cash flows in 2020, potentially indicative of external challenges or operational disruptions during that period. However, both metrics recovered robustly in subsequent years, reaching new highs by 2022 before a marginal reduction in 2023. The overall trend is positive, indicating improving liquidity and operational efficiency over the long term.
Interest Paid, Net of Tax
Texas Pacific Land Corp., interest paid, net of tax calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-12-31).
2 2023 Calculation
Interest paid, tax = Interest paid × EITR
= × =
The analysis of the available financial data indicates that the effective income tax rate (EITR) of the company exhibited fluctuations over the five-year period ending in 2023. Starting at 20.8% in 2019, the rate decreased slightly to 19.9% in 2020, followed by a notable increase to 25.6% in 2021. Subsequently, the rate declined again to 21.5% in 2022 and remained relatively stable at 21.6% in 2023.
This variation in EITR suggests the presence of external or internal factors influencing the company's tax obligations or benefits during the period. The spike in 2021 may reflect changes in tax regulations, shifts in income composition, or one-time adjustments affecting the tax expense. The stabilization near the low twenties in the final two years indicates a return to a more consistent tax environment or company tax strategy.
No data was available for interest paid, net of tax, or other financial metrics, limiting further analysis on financial cost trends or leverage effects.
Enterprise Value to FCFF Ratio, Current
Texas Pacific Land Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
| EV/FCFF, Sector | |
| Oil, Gas & Consumable Fuels | |
| EV/FCFF, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2023-12-31).
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
Texas Pacific Land Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| EV/FCFF, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| EV/FCFF, Industry | ||||||
| Energy | ||||||
Based on: 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), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced notable fluctuations over the five-year period. Starting at approximately $4.96 billion in 2019, it increased sharply to about $8.34 billion in 2020. The value then declined to roughly $7.41 billion in 2021, before surging again to a peak of $13.25 billion in 2022. In 2023, the enterprise value decreased to around $10.95 billion. Overall, the trend indicates considerable volatility with significant increases in 2020 and 2022, followed by declines in 2021 and 2023.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm showed variation but generally an upward trend over the period. Starting at approximately $311 million in 2019, it declined to about $202 million in 2020. Subsequently, FCFF grew to $251 million in 2021, then increased significantly to a peak of $428 million in 2022. In 2023, it slightly decreased to $403 million. This pattern suggests some resilience and growth in the firm’s cash-generating ability despite fluctuations.
- EV/FCFF Ratio
- The valuation multiple as measured by the EV/FCFF ratio exhibited considerable variation. The ratio rose sharply from 15.95 in 2019 to 41.31 in 2020, indicating a substantial increase in enterprise value relative to free cash flow. It then decreased to 29.56 in 2021, followed by a slight increase to 30.97 in 2022. In 2023, the ratio declined to 27.15. This suggests that the market valuation relative to the firm’s cash flow reached a peak in 2020, before settling at lower but still elevated levels in subsequent years.
- Summary
- The data reveals substantial volatility in enterprise value and valuation multiples over the five-year span. While free cash flow experienced a dip in 2020, it demonstrated recovery and growth in later periods. The EV/FCFF ratio indicates the market's valuation efficiency fluctuated, peaking in 2020 and then moderating. These trends may reflect market conditions, company performance dynamics, or investor sentiment influencing valuation and cash flow trajectories.