Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
O’Reilly Automotive Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to O’Reilly Automotive Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
O’Reilly Automotive Inc., FCFF calculation
US$ in thousands
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, 2 See details »
The data indicates a consistent increase in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the five-year period.
- Net cash provided by operating activities
- This metric demonstrates steady growth from 1,403,687 thousand US dollars in 2017 to 3,207,310 thousand US dollars in 2021. A notable acceleration occurs in 2020, where the amount increases significantly compared to prior years, continuing to rise in 2021. This suggests an improvement in core operational efficiency or increased operational scale.
- Free cash flow to the firm (FCFF)
- FCFF also shows a positive trend across the reported years, starting at 1,001,933 thousand US dollars in 2017 and rising to 2,891,672 thousand US dollars in 2021. Similar to operating cash flow, the most substantial increase happens in 2020 and 2021, indicating better cash generation available to investors after accounting for capital expenditures.
Overall, both indicators reflect strong cash flow performance, with sharp improvements emerging in the later years. The substantial increase in 2020 and 2021 could be attributed to strategic operational improvements or market conditions favoring cash generation. The alignment in growth patterns between operating cash flow and free cash flow underscores the company's enhanced ability to convert operations into free cash flow effectively.
Interest Paid, Net of Tax
O’Reilly Automotive Inc., interest paid, net of tax calculation
US$ in thousands
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).
2 2021 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= × =
3 2021 Calculation
Interest costs capitalized, tax = Interest costs capitalized × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate demonstrated a significant decline from 30.77% in 2017 to approximately 22.19% in 2021. The most pronounced drop occurred between 2017 and 2018, where the rate decreased by nearly 9 percentage points. Following this, the EITR stabilized, maintaining a range close to 22% from 2018 through 2021. This trend suggests a reduction in the company’s tax burden or changes in tax strategy or legislation leading to a more favorable effective tax rate over the analyzed period.
- Interest Paid, Net of Capitalized Interest and Net of Tax
- Interest paid, net of capitalized interest and after tax adjustments, increased steadily from $53,837 thousand in 2017 to a peak of $123,493 thousand in 2020. There was a slight decline to $112,274 thousand in 2021, although the value remained substantially higher than the 2017 level. The continuous rise until 2020 implies growing interest expense obligations, which may be associated with increased borrowing or higher interest rates. The moderation in 2021 indicates a possible reduction in interest expense or debt levels, or changes in financing structure.
- Interest Costs Capitalized, Net of Tax
- Interest costs capitalized, net of tax, rose from $5,885 thousand in 2017 to a high of $10,101 thousand in 2019, before declining to $5,447 thousand by 2021. This pattern shows an initial increase in capitalized interest costs, which may be linked to investments in long-term assets or projects financed through debt. The subsequent decline after 2019 suggests either completion of capital projects or a shift in accounting or financing strategies that led to lower capitalized interest expenses.
Enterprise Value to FCFF Ratio, Current
O’Reilly Automotive Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Amazon.com Inc. | |
| Home Depot Inc. | |
| Lowe’s Cos. Inc. | |
| TJX Cos. Inc. | |
| EV/FCFF, Sector | |
| Consumer Discretionary Distribution & Retail | |
| EV/FCFF, Industry | |
| Consumer Discretionary | |
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.
Enterprise Value to FCFF Ratio, Historical
O’Reilly Automotive 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 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Amazon.com Inc. | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Consumer Discretionary Distribution & Retail | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | ||||||
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).
3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The financial data reveals notable trends in both enterprise value and free cash flow to the firm over the five-year period ending December 31, 2021.
- Enterprise Value (EV)
- The enterprise value shows a consistent upward trajectory throughout the period, increasing from approximately $23.4 billion in 2017 to around $46.7 billion by the end of 2021. This represents nearly a doubling of the enterprise value over the five years. However, there is a minor decline observed between 2018 and 2019. Despite this, the overall growth trend resumes and accelerates in the subsequent years.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow exhibits a generally positive trend with fluctuations in magnitude. Starting at approximately $1.0 billion in 2017, FCFF rises to around $1.3 billion in 2018, followed by a moderate decrease in 2019. A significant increase occurs in 2020, with FCFF more than doubling compared to 2019, and this strong cash flow generation continues to grow in 2021, reaching nearly $2.9 billion.
- EV/FCFF Ratio
- The EV/FCFF ratio shows variability that inversely reflects the free cash flow movements. This ratio rises from 23.32 in 2017 to a peak of 26.17 in 2019, corresponding with the dip in free cash flow. Post-2019, the ratio declines sharply to 13.92 in 2020, reflecting the sharp increase in FCFF. By 2021, the ratio moderately increases again to 16.15, suggesting that enterprise value grew faster than free cash flow but remained significantly lower than the earlier peak.
Overall, the data indicates robust growth in enterprise value complemented by a substantial increase in free cash flow in the latter years. The decreasing EV/FCFF ratio from 2019 to 2020 indicates improved cash flow efficiency relative to valuation, although this trend slightly reverses in 2021. The variability in these metrics may warrant further investigation into the drivers behind cash flow fluctuations and valuation changes during this period.