Kraft Heinz Co., FCFF calculation

US$ in millions

12 months ended:	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Net income (loss) attributable to Kraft Heinz	1,935)	(10,192)	10,999)	3,632)	634)
Net (income) loss attributable to noncontrolling interest	(2)	(62)	(9)	10)	13)
Net noncash charges	1,852)	14,891)	(7,068)	567)	1,153)
Changes in current assets and liabilities	(233)	(2,063)	(3,395)	1,029)	667)
Net cash provided by operating activities	3,552)	2,574)	527)	5,238)	2,467)
Cash paid during the period for interest, net of tax¹	948)	1,204)	906)	853)	449)
Capital expenditures	(768)	(826)	(1,217)	(1,247)	(648)
Free cash flow to the firm (FCFF)	3,732)	2,952)	216)	4,844)	2,268)

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Kraft Heinz Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Kraft Heinz Co. FCFF increased from 2017 to 2018 and from 2018 to 2019.

Kraft Heinz Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR¹	27.40%	8.90%	28.60%	27.50%	36.20%
Interest Paid, Net of Tax
Cash paid during the period for interest, before tax	1,306)	1,322)	1,269)	1,176)	704)
Less: Cash paid during the period for interest, tax²	358)	118)	363)	323)	255)
Cash paid during the period for interest, net of tax	948)	1,204)	906)	853)	449)

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² 2019 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= 1,306 × 27.40% = 358

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Kraft Heinz Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	69,123)
Free cash flow to the firm (FCFF)	3,732)
Valuation Ratio
EV/FCFF	18.52
Benchmarks
EV/FCFF, Competitors¹
Altria Group Inc.	11.55
Coca-Cola Co.	27.69
PepsiCo Inc.	28.14
Philip Morris International Inc.	27.06
EV/FCFF, Sector
Food, Beverage & Tobacco	25.93
EV/FCFF, Industry
Consumer Staples	34.01

Based on: 10-K (reporting date: 2019-12-28).

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.

Kraft Heinz Co., historical EV/FCFF calculation, comparison to benchmarks

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	59,922)	65,217)	116,405)	141,537)	114,624)
Free cash flow to the firm (FCFF)²	3,732)	2,952)	216)	4,844)	2,268)
Valuation Ratio
EV/FCFF³	16.06	22.09	538.75	29.22	50.54
Benchmarks
EV/FCFF, Competitors⁴
Altria Group Inc.	12.41	—	—	—	—
Coca-Cola Co.	28.08	—	—	—	—
PepsiCo Inc.	35.72	—	—	—	—
Philip Morris International Inc.	16.47	—	—	—	—
EV/FCFF, Sector
Food, Beverage & Tobacco	22.56	—	—	—	—
EV/FCFF, Industry
Consumer Staples	22.08	—	—	—	—

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² See details »

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 59,922 ÷ 3,732 = 16.06

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.	Kraft Heinz Co. EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.

Kraft Heinz Co. (NASDAQ:KHC)

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