Microsoft Excel LibreOffice Calc

Walmart Inc. (WMT)


Enterprise Value to FCFF (EV/FCFF)

Difficulty: Intermediate


Free Cash Flow to The Firm (FCFF)

Walmart Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Consolidated net income attributable to Walmart 6,670  9,862  13,643  14,694  16,363  16,022 
Consolidated net income attributable to noncontrolling interest 509  661  650  386  736  673 
Net noncash charges 20,279  14,571  11,047  10,192  9,170  9,385 
Changes in certain assets and liabilities, net of effects of acquisitions 295  3,243  6,190  2,117  2,295  (2,823)
Net cash provided by operating activities 27,753  28,337  31,530  27,389  28,564  23,257 
Interest paid, net of tax1 1,538  1,661  1,639  1,770  1,650  1,585 
Payments for property and equipment (10,344) (10,051) (10,619) (11,477) (12,174) (13,115)
Proceeds from the disposal of property and equipment 519  378  456  635  570  727 
Free cash flow to the firm (FCFF) 19,466  20,325  23,006  18,317  18,610  12,454 

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Walmart Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Walmart Inc.’s FCFF declined from 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

Walmart Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Effective Income Tax Rate (EITR)
EITR1 34.50% 32.20% 30.30% 30.30% 32.20% 32.90%
Interest Paid, Net of Tax
Interest paid, before tax 2,348  2,450  2,351  2,540  2,433  2,362 
Less: Interest paid, tax2 810  789  712  770  783  777 
Interest paid, net of tax 1,538  1,661  1,639  1,770  1,650  1,585 

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).

1 See Details »

2 2019 Calculation
Interest paid, tax = Interest paid × EITR
= 2,348 × 34.50% = 810


Enterprise Value to FCFF Ratio, Current

Walmart Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 386,163 
Free cash flow to the firm (FCFF) 19,466 
Ratio
EV/FCFF 19.84
Benchmarks
EV/FCFF, Competitors1
Amazon.com Inc. 140.52
Costco Wholesale Corp. 43.34
eBay Inc. 16.56
Home Depot Inc. 25.10
Lowe’s Cos. Inc. 18.93
Netflix Inc.
Target Corp. 23.12
TJX Cos. Inc. 22.27
EV/FCFF, Sector
General Retailers 40.88
EV/FCFF, Industry
Consumer Services 28.93

Based on: 10-K (filing date: 2019-03-28).

1 Click competitor name to see calculations.

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

Walmart Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 336,181  305,207  260,427  260,724  306,165  300,184 
Free cash flow to the firm (FCFF)2 19,466  20,325  23,006  18,317  18,610  12,454 
Ratio
EV/FCFF3 17.27 15.02 11.32 14.23 16.45 24.10
Benchmarks
EV/FCFF, Competitors4
Amazon.com Inc. 125.66 125.27 121.38
Costco Wholesale Corp. 32.60 16.20 90.26 33.09 25.32
eBay Inc. 15.42 17.65 15.63 12.28 14.40
Home Depot Inc. 21.24 21.24 23.12 21.98 22.78 18.16
Lowe’s Cos. Inc. 19.03 20.23 17.95 21.04 18.86 17.37
Netflix Inc.
Target Corp. 17.80 10.10 9.54 14.42 15.60 13.87
TJX Cos. Inc. 21.45 26.00 19.58 24.86 22.43 24.87
EV/FCFF, Sector
General Retailers 35.41 36.28 28.57 25.47 28.12
EV/FCFF, Industry
Consumer Services 25.20 27.72 23.83 23.67 25.70

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).

1 See Details »

2 See Details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 336,181 ÷ 19,466 = 17.27

4 Click competitor name to see calculations.

Ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Walmart Inc.’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.