Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Time Warner Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income attributable to Time Warner Inc. shareholders 5,247 3,926 3,833 3,827 3,691
Net loss attributable to noncontrolling interests (3) (1) (1)
Net noncash charges 10,000 10,739 9,473 9,235 9,319
Changes in operating assets and liabilities, net of acquisitions (10,150) (9,981) (9,454) (9,381) (9,294)
Cash provided by operations 5,094 4,683 3,851 3,681 3,716
Cash payments made for interest, net of tax1 1,060 1,043 883 1,057 805
Capital expenditures (656) (432) (423) (474) (602)
Free cash flow to the firm (FCFF) 5,498 5,294 4,311 4,264 3,919

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Time Warner Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Time Warner Inc. FCFF increased from 2015 to 2016 and from 2016 to 2017.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Effective Income Tax Rate (EITR)
EITR1 11.79% 25.00% 30.00% 17.00% 33.00%
Interest Paid, Net of Tax
Cash payments made for interest, before tax 1,202 1,391 1,262 1,274 1,202
Less: Cash payments made for interest, tax2 142 348 379 217 397
Cash payments made for interest, net of tax 1,060 1,043 883 1,057 805

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

1 See details »

2 2017 Calculation
Cash payments made for interest, tax = Cash payments made for interest × EITR
= 1,202 × 11.79% = 142


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 94,404
Free cash flow to the firm (FCFF) 5,498
Valuation Ratio
EV/FCFF 17.17
Benchmarks
EV/FCFF, Competitors1
Alphabet Inc. 25.64
Charter Communications Inc. 19.99
Comcast Corp. 16.72
Meta Platforms Inc. 27.51
Netflix Inc. 36.29
Walt Disney Co. 38.92

Based on: 10-K (reporting date: 2017-12-31).

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

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

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 94,719 97,959 74,309 88,328 76,049
Free cash flow to the firm (FCFF)2 5,498 5,294 4,311 4,264 3,919
Valuation Ratio
EV/FCFF3 17.23 18.50 17.24 20.71 19.40
Benchmarks
EV/FCFF, Competitors4
Alphabet Inc.
Charter Communications Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

1 See details »

2 See details »

3 2017 Calculation
EV/FCFF = EV ÷ FCFF
= 94,719 ÷ 5,498 = 17.23

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. Time Warner Inc. EV/FCFF ratio increased from 2015 to 2016 but then decreased significantly from 2016 to 2017.