Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Walmart Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
- Net cash provided by operating activities
- The net cash provided by operating activities shows a generally increasing trend over the analyzed periods. Starting at $25,255 million in 2020, the figure peaks at $36,074 million in 2021, then declines to $24,181 million in 2022. Subsequently, it recovers to $28,841 million in 2023 and continues to rise to $35,726 million in 2024, with a slight increase to $36,443 million in 2025. This suggests variability in operational cash flow, with a notable dip in 2022 followed by a strong recovery and stability at higher levels in the most recent years.
- Free cash flow to the firm (FCFF)
- The free cash flow to the firm exhibits more pronounced fluctuations compared to operating cash flow. It begins at $16,734 million in 2020, surges substantially to $27,503 million in 2021, then experiences a sharp decline to $13,138 million in 2022. After a modest recovery to $13,516 million in 2023, FCFF rises again to $17,247 million in 2024 but decreases slightly to $15,190 million in 2025. This pattern indicates greater volatility in cash remaining after capital expenditures, highlighting potential variations in investment levels or operational efficiency across the years.
- Comparative observations
- While both metrics display volatility, the net cash from operating activities maintains a relatively strong recovery after declines, suggesting consistent core operational capacity. Conversely, free cash flow to the firm shows more significant drops following peaks, pointing to potential cyclical investment activities or changing capital expenditure strategies that impact the cash flow available to the firm. The divergence in trends during certain periods implies that capital spending and other cash outflows may have influenced overall cash availability differently than operational cash inflows.
Interest Paid, Net of Tax
Walmart Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
2 2025 Calculation
Interest paid, tax = Interest paid × EITR
= 2,739 × 23.40% = 641
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibits a fluctuating pattern over the analyzed periods. Starting at 24.4% in January 2020, it rose significantly to 33.3% in January 2021. The rate then decreased to 25.4% in January 2022, followed by another increase to 33.6% in January 2023. In the subsequent years, there was a decline to 25.5% in January 2024 and a further decrease to 23.4% by January 2025. This oscillating trend suggests periodic variations in the company's tax obligations, which may be influenced by changes in tax legislation, geographic earnings mix, or tax planning strategies.
- Interest Paid, Net of Tax
- The interest paid, net of tax, decreased from $1,863 million in January 2020 to $1,478 million in January 2021, indicating reduced interest expenses or improved tax impact on interest payments. However, the figure then increased to $1,669 million in January 2022 before declining again to $1,362 million in January 2023. Following this, interest paid rose substantially to $1,877 million in January 2024 and continued its upward trend to $2,098 million by January 2025. This overall upward movement in recent years may reflect increased borrowings, changes in interest rates, or adjustments in the company's capital structure that result in higher net interest payments.
Enterprise Value to FCFF Ratio, Current
Walmart Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 823,486) |
| Free cash flow to the firm (FCFF) | 15,190) |
| Valuation Ratio | |
| EV/FCFF | 54.21 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Costco Wholesale Corp. | 66.69 |
| Target Corp. | 12.07 |
| EV/FCFF, Sector | |
| Consumer Staples Distribution & Retail | 47.03 |
| EV/FCFF, Industry | |
| Consumer Staples | 35.54 |
Based on: 10-K (reporting date: 2025-01-31).
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
Walmart Inc., historical EV/FCFF calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 727,399) | 532,474) | 418,859) | 436,928) | 408,829) | 374,682) | |
| Free cash flow to the firm (FCFF)2 | 15,190) | 17,247) | 13,516) | 13,138) | 27,503) | 16,734) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 47.89 | 30.87 | 30.99 | 33.26 | 14.86 | 22.39 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Costco Wholesale Corp. | — | 61.14 | 36.07 | 74.47 | 38.43 | 26.70 | |
| Target Corp. | 12.95 | 21.20 | — | 20.94 | 11.33 | 14.93 | |
| EV/FCFF, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 36.48 | 39.69 | 35.73 | 17.09 | 22.18 | |
| EV/FCFF, Industry | |||||||
| Consumer Staples | — | 31.17 | 30.26 | 30.41 | 20.99 | 23.37 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 727,399 ÷ 15,190 = 47.89
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a general upward trend over the observed periods. Starting at approximately $374.7 billion in early 2020, it increased steadily to around $437.0 billion by early 2022. Although there was a slight decline in early 2023 to about $418.9 billion, the value rebounded significantly in the subsequent years, reaching $532.5 billion in early 2024 and further expanding to $727.4 billion by early 2025. This indicates a substantial growth in the company's overall valuation over the five-year span, with the most notable surge occurring between 2024 and 2025.
- Free Cash Flow to the Firm (FCFF)
- The FCFF figures show notable volatility across the periods. It nearly doubled from roughly $16.7 billion in early 2020 to $27.5 billion in early 2021, suggesting improved cash generation capacity in that interval. However, there was a sharp decline to about $13.1 billion in early 2022 and a marginal increase to $13.5 billion in early 2023. Subsequently, FCFF showed recovery by rising to $17.2 billion in early 2024 but then slightly decreased to $15.2 billion by early 2025. This fluctuation indicates inconsistent operational cash flow performance with significant ups and downs after the initial peak in 2021.
- EV to FCFF Ratio
- The EV/FCFF ratio exhibits significant variability, reflecting changes in both enterprise value and cash flow generation. The ratio decreased from 22.39 in 2020 to 14.86 in 2021, coinciding with the rise in FCFF and moderate EV growth. Following this low, the ratio increased sharply to 33.26 in 2022 and remained elevated near 31 in 2023 and 2024, indicating the enterprise value grew disproportionately relative to free cash flow. By early 2025, the ratio peaked at 47.89, suggesting that enterprise value expanded at a much faster pace compared to FCFF, potentially signaling higher market expectations or valuation pressure despite the declining cash flow generation.