Meta Platforms Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	39,098)	23,200)	39,370)	29,146)	18,485)
Net noncash charges	28,179)	21,592)	17,613)	12,324)	10,579)
Changes in assets and liabilities	3,836)	5,683)	700)	(2,723)	7,250)
Net cash provided by operating activities	71,113)	50,475)	57,683)	38,747)	36,314)
Cash paid for interest, net of amounts capitalized, net of tax¹	369)	—)	—)	—)	—)
Capitalized interest, net of tax²	233)	—)	—)	—)	—)
Purchases of property and equipment	(27,266)	(31,431)	(18,690)	(15,163)	(15,102)
Proceeds relating to property and equipment	221)	245)	123)	48)	—)
Lease liabilities arising from obtaining right-of-use assets, finance leases	(588)	(223)	(160)	(121)	(193)
Free cash flow to the firm (FCFF)	44,082)	19,066)	38,956)	23,511)	21,019)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Meta Platforms Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Meta Platforms Inc. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Meta Platforms Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	17.60%	19.50%	16.70%	12.20%	25.50%
Interest Paid, Net of Tax
Cash paid for interest, net of amounts capitalized, before tax	448)	—)	—)	—)	—)
Less: Cash paid for interest, net of amounts capitalized, tax²	79)	—)	—)	—)	—)
Cash paid for interest, net of amounts capitalized, net of tax	369)	—)	—)	—)	—)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	283)	—)	—)	—)	—)
Less: Capitalized interest, tax³	50)	—)	—)	—)	—)
Capitalized interest, net of tax	233)	—)	—)	—)	—)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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² 2023 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= 448 × 17.60% = 79

³ 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 283 × 17.60% = 50

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Meta Platforms Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	1,467,885)
Free cash flow to the firm (FCFF)	44,082)
Valuation Ratio
EV/FCFF	33.30
Benchmarks
EV/FCFF, Competitors¹
Alphabet Inc.	32.60
Comcast Corp.	15.07
Netflix Inc.	52.56
Walt Disney Co.	23.55
EV/FCFF, Sector
Media & Entertainment	31.96
EV/FCFF, Industry
Communication Services	28.16

Based on: 10-K (reporting date: 2023-12-31).

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.

Meta Platforms Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	1,164,614)	459,285)	599,752)	693,202)	542,873)
Free cash flow to the firm (FCFF)²	44,082)	19,066)	38,956)	23,511)	21,019)
Valuation Ratio
EV/FCFF³	26.42	24.09	15.40	29.48	25.83
Benchmarks
EV/FCFF, Competitors⁴
Alphabet Inc.	23.84	20.67	27.17	29.53	28.19
Comcast Corp.	17.60	17.93	15.77	20.50	18.00
Netflix Inc.	33.81	77.11	335.37	95.41	—
Walt Disney Co.	31.55	90.23	78.66	63.77	143.18
EV/FCFF, Sector
Media & Entertainment	24.72	23.60	24.79	31.56	32.03
EV/FCFF, Industry
Communication Services	22.31	23.31	31.50	25.72	24.63

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 1,164,614 ÷ 44,082 = 26.42

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.	Meta Platforms Inc. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.

Meta Platforms Inc. (NASDAQ:META)

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