Biogen Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to Biogen Inc.	1,556,100)	4,000,600)	5,888,500)	4,430,700)	2,539,100)
Net income attributable to noncontrolling interests, net of tax	171,500)	59,900)	—)	43,300)	131,000)
Net noncash charges	2,057,800)	356,500)	990,800)	1,313,500)	1,645,500)
Changes in operating assets and liabilities, net	(145,500)	(187,200)	199,300)	400,200)	235,400)
Net cash flow provided by operating activities	3,639,900)	4,229,800)	7,078,600)	6,187,700)	4,551,000)
Cash paid during the year for interest, net of tax¹	272,376)	218,978)	204,395)	189,453)	211,275)
Capitalized interest costs related to construction in progress, net of tax²	35,211)	52,356)	57,586)	42,066)	23,025)
Purchases of property, plant and equipment	(258,100)	(424,800)	(514,500)	(770,600)	(867,400)
Acquisitions of intangible assets	(18,800)	(52,000)	(155,000)	(3,000)	(975,400)
Free cash flow to the firm (FCFF)	3,670,587)	4,024,334)	6,671,081)	5,645,619)	2,942,500)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Biogen Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Biogen Inc. FCFF decreased from 2019 to 2020 and from 2020 to 2021.

Biogen Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	3.00%	19.70%	16.30%	22.10%	25.00%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax	280,800)	272,700)	244,200)	243,200)	281,700)
Less: Cash paid during the year for interest, tax²	8,424)	53,722)	39,805)	53,747)	70,425)
Cash paid during the year for interest, net of tax	272,376)	218,978)	204,395)	189,453)	211,275)
Interest Costs Capitalized, Net of Tax
Capitalized interest costs related to construction in progress, before tax	36,300)	65,200)	68,800)	54,000)	30,700)
Less: Capitalized interest costs related to construction in progress, tax³	1,089)	12,844)	11,214)	11,934)	7,675)
Capitalized interest costs related to construction in progress, net of tax	35,211)	52,356)	57,586)	42,066)	23,025)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² 2021 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 280,800 × 3.00% = 8,424

³ 2021 Calculation
Capitalized interest costs related to construction in progress, tax = Capitalized interest costs related to construction in progress × EITR
= 36,300 × 3.00% = 1,089

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	42,927,124)
Free cash flow to the firm (FCFF)	3,670,587)
Valuation Ratio
EV/FCFF	11.69
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	14.30
Amgen Inc.	22.15
Bristol-Myers Squibb Co.	10.51
Danaher Corp.	33.21
Eli Lilly & Co.	661.15
Gilead Sciences Inc.	15.72
Johnson & Johnson	18.87
Merck & Co. Inc.	29.32
Moderna Inc.	—
Pfizer Inc.	30.11
Regeneron Pharmaceuticals Inc.	18.65
Thermo Fisher Scientific Inc.	26.75
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	17.26
EV/FCFF, Industry
Health Care	18.14

Based on: 10-K (reporting date: 2021-12-31).

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.

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

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	35,890,898)	44,904,281)	60,176,147)	67,941,735)	75,435,189)
Free cash flow to the firm (FCFF)²	3,670,587)	4,024,334)	6,671,081)	5,645,619)	2,942,500)
Valuation Ratio
EV/FCFF³	9.78	11.16	9.02	12.03	25.64
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	13.18	13.95	11.60	—	—
Amgen Inc.	15.82	14.51	16.05	—	—
Bristol-Myers Squibb Co.	10.52	11.63	23.39	—	—
Danaher Corp.	28.25	30.66	37.11	—	—
Eli Lilly & Co.	38.37	39.01	36.26	—	—
Gilead Sciences Inc.	8.42	13.60	9.78	—	—
Johnson & Johnson	21.25	20.75	19.31	—	—
Merck & Co. Inc.	23.27	34.12	20.46	—	—
Moderna Inc.	3.86	29.20	—	—	—
Pfizer Inc.	8.40	21.74	19.44	—	—
Regeneron Pharmaceuticals Inc.	9.81	25.74	19.54	—	—
Thermo Fisher Scientific Inc.	33.14	26.14	28.88	—	—
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	15.03	20.02	19.33	—	—
EV/FCFF, Industry
Health Care	16.41	17.93	18.26	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 35,890,898 ÷ 3,670,587 = 9.78

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Biogen Inc. EV/FCFF ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Biogen Inc. (NASDAQ:BIIB)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical