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Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
United Parcel Service Inc., FCFF calculation
USD $ in millions
Based on: 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-27), 10-K (filing date: 2014-02-28).
1, 2 See Details »
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the United Parcel Service Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | United Parcel Service Inc.'s FCFF declined from 2015 to 2016 and from 2016 to 2017. |
Interest Paid, Net of Tax
United Parcel Service Inc., interest paid, net of tax calculation
USD $ in millions
Based on: 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-27), 10-K (filing date: 2014-02-28).
2017 Calculations
2 Cash paid during the period for interest, net of amount capitalized, tax = Cash paid during the period for interest, net of amount capitalized × EITR
= × =
3 Capitalized interest, tax = Capitalized interest × EITR
= × =
Enterprise Value to FCFF Ratio, Current
United Parcel Service Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| CSX Corp. | |
| FedEx Corp. | |
| Union Pacific Corp. | |
| EV/FCFF, Sector | |
| Industrial Transportation | |
| EV/FCFF, Industry | |
| Industrials | |
Based on: 10-K (filing date: 2018-02-21).
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.
Enterprise Value to FCFF Ratio, Historical
United Parcel Service Inc., historical EV/FCFF calculation, comparison to benchmarks
Based on: 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-27), 10-K (filing date: 2014-02-28).
2017 Calculations
3 EV/FCFF = EV ÷ FCFF
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | United Parcel Service Inc.'s EV/FCFF ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017. |
