Time Warner Cable Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income attributable to TWC shareholders	1,844)	2,031)	1,954)	2,155)	1,665)
Net income attributable to noncontrolling interests	—)	—)	—)	4)	2)
Net noncash charges	4,238)	4,155)	3,679)	3,385)	3,898)
Changes in operating assets and liabilities, net of acquisitions and dispositions	457)	164)	120)	(19)	123)
Cash provided by operating activities	6,539)	6,350)	5,753)	5,525)	5,688)
Cash paid for interest, net of tax¹	915)	977)	1,119)	1,147)	1,080)
Capital expenditures	(4,446)	(4,097)	(3,198)	(3,095)	(2,937)
Acquisition of intangible assets	(51)	(39)	(40)	(37)	(47)
Free cash flow to the firm (FCFF)	2,957)	3,191)	3,634)	3,540)	3,784)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Time Warner Cable Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Time Warner Cable Inc. FCFF decreased from 2013 to 2014 and from 2014 to 2015.

Time Warner Cable Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Effective Income Tax Rate (EITR)
EITR¹	38.29%	37.47%	35.70%	35.28%	32.29%
Interest Paid, Net of Tax
Cash paid for interest, before tax	1,482)	1,562)	1,740)	1,773)	1,595)
Less: Cash paid for interest, tax²	567)	585)	621)	626)	515)
Cash paid for interest, net of tax	915)	977)	1,119)	1,147)	1,080)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

¹ See details »

² 2015 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 1,482 × 38.29% = 567

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Time Warner Cable Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	81,348)
Free cash flow to the firm (FCFF)	2,957)
Valuation Ratio
EV/FCFF	27.51
Benchmarks
EV/FCFF, Competitors¹
Alphabet Inc.	28.49
Comcast Corp.	15.49
Meta Platforms Inc.	24.96
Netflix Inc.	34.18
Walt Disney Co.	36.90

Based on: 10-K (reporting date: 2015-12-31).

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.

Time Warner Cable Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	73,738)	65,077)	64,756)	48,931)	45,664)
Free cash flow to the firm (FCFF)²	2,957)	3,191)	3,634)	3,540)	3,784)
Valuation Ratio
EV/FCFF³	24.94	20.40	17.82	13.82	12.07
Benchmarks
EV/FCFF, Competitors⁴
Alphabet Inc.	—	—	—	—	—
Comcast Corp.	—	—	—	—	—
Meta Platforms Inc.	—	—	—	—	—
Netflix Inc.	—	—	—	—	—
Walt Disney Co.	—	—	—	—	—

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

¹ See details »

² See details »

³ 2015 Calculation
EV/FCFF = EV ÷ FCFF
= 73,738 ÷ 2,957 = 24.94

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Time Warner Cable Inc. EV/FCFF ratio increased from 2013 to 2014 and from 2014 to 2015.

Time Warner Cable Inc. (NYSE:TWC)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical