Walmart Inc., FCFF calculation

US$ in millions

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

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.

Walmart Inc., interest paid, net of tax calculation

US$ in millions

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

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

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

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

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.

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

	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

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.

Walmart Inc. (WMT)

Enterprise Value to FCFF (EV/FCFF)