Enterprise Value to FCFF (EV/FCFF)
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- Cash Flow Statement
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2010
- Current Ratio since 2010
- Price to Operating Profit (P/OP) since 2010
- Aggregate Accruals
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Free Cash Flow to The Firm (FCFF)
Tesla Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1, 2 See details »
The financial information indicates fluctuations in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the five-year period. Operating cash flow demonstrates an overall positive trend, while FCFF exhibits more volatility.
- Net Cash from Operations
- Net cash provided by operating activities increased from US$11,497 million in 2021 to US$14,724 million in 2022, representing a substantial rise. This was followed by a decrease to US$13,256 million in 2023, before recovering to US$14,923 million in 2024. The most recent year, 2025, shows a slight decrease to US$14,747 million. Overall, operating cash flow remains at a consistently high level, with moderate fluctuations.
- Free Cash Flow to the Firm (FCFF)
- FCFF experienced a significant increase from US$4,781 million in 2021 to US$7,633 million in 2022. However, this was followed by a considerable decline to US$4,447 million in 2023. A further decrease was observed in 2024, with FCFF falling to US$3,657 million. The latest year, 2025, shows a notable recovery, with FCFF rising to US$6,433 million. This indicates a cyclical pattern in FCFF, with periods of strong growth followed by declines and subsequent recoveries.
The divergence between the trends in operating cash flow and FCFF suggests that factors beyond core operations, such as capital expenditures or changes in working capital, are significantly impacting the amount of cash available to the firm’s investors. The substantial increase in FCFF in 2025, despite a slight decrease in operating cash flow, warrants further investigation to determine the underlying drivers of this improvement.
- FCFF Volatility
- The FCFF figures demonstrate a higher degree of volatility compared to the operating cash flow. This suggests that the firm’s investment decisions or financing activities have a considerable influence on the cash available to its providers of capital. The fluctuations in FCFF could be attributed to large capital investments, changes in net working capital, or other non-operating cash flows.
Continued monitoring of both operating cash flow and FCFF is recommended to understand the sustainability of the firm’s cash generation and its ability to fund future growth initiatives and return value to investors.
Interest Paid, Net of Tax
Tesla Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2 2025 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= × =
3 2025 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= × =
The period between 2021 and 2025 demonstrates fluctuating trends in interest expense, net of tax effects, alongside changes in the effective income tax rate. Cash paid for interest, net of tax, decreased initially before increasing again, while capitalized interest, net of tax, was only reported for 2021.
- Cash Paid for Interest, Net of Tax
- Cash paid for interest, net of tax, experienced a significant decrease from US$237 million in 2021 to US$139 million in 2022, representing a 41.4% reduction. This was followed by a further decrease to US$100 million in 2023, the lowest value observed during the analyzed period. However, a reversal of this trend occurred in 2024 and 2025, with cash paid for interest increasing to US$220 million and US$213 million respectively. The 2025 value represents an increase of approximately 113% from the 2023 low.
- Capitalized Interest, Net of Tax
- Capitalized interest, net of tax, was reported as US$47 million in 2021. No values were reported for this item in subsequent years (2022-2025), suggesting either no qualifying expenditures were made during those periods or that the information was not disclosed.
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited considerable volatility. It decreased from 11.02% in 2021 to 8.25% in 2022, then increased substantially to 21.00% in 2023. A slight decrease to 20.43% was observed in 2024, followed by a further increase to 27.00% in 2025. These fluctuations in the EITR could influence the net-of-tax impact of interest expense.
The increase in cash paid for interest in 2024 and 2025, coupled with the rising effective income tax rate, suggests a potentially growing interest burden. The absence of capitalized interest figures after 2021 warrants further investigation to understand the company’s investment activities and accounting practices.
Enterprise Value to FCFF Ratio, Current
Tesla Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Ford Motor Co. | |
| General Motors Co. | |
| EV/FCFF, Sector | |
| Automobiles & Components | |
| EV/FCFF, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2025-12-31).
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
Tesla Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| EV/FCFF, Sector | ||||||
| Automobiles & Components | ||||||
| EV/FCFF, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits considerable fluctuation over the observed period. Initial values demonstrate a significant decrease followed by subsequent increases, suggesting evolving investor sentiment and company performance dynamics.
- Enterprise Value (EV)
- Enterprise Value decreased substantially from $927.706 billion in 2021 to $529.785 billion in 2022. A moderate increase followed in 2023, reaching $584.941 billion, before a substantial rise to $1,259.861 billion in 2024. This upward trend continued into 2025, with EV reaching $1,528.100 billion. The pattern indicates periods of valuation contraction followed by significant expansion.
- Free Cash Flow to the Firm (FCFF)
- Free Cash Flow to the Firm increased from $4.781 billion in 2021 to $7.633 billion in 2022. However, FCFF declined in 2023 to $4.447 billion, and further decreased to $3.657 billion in 2024. A recovery is observed in 2025, with FCFF rising to $6.433 billion. This suggests volatility in the company’s cash generation capabilities.
- EV/FCFF Ratio
- The EV/FCFF ratio began at 194.05 in 2021, decreasing dramatically to 69.40 in 2022. It then increased to 131.55 in 2023, before surging to 344.47 in 2024. The ratio moderated somewhat in 2025, settling at 237.53. The initial decline in the ratio coincided with the decrease in EV and the increase in FCFF. The subsequent increases in the ratio are primarily driven by the substantial increases in EV, despite fluctuations in FCFF. The high values in 2021 and 2024 suggest that the market valued the firm at a significant premium relative to its free cash flow generation during those periods.
The observed trends indicate a complex relationship between enterprise value and free cash flow. While FCFF experienced fluctuations, the more pronounced changes in EV appear to be the primary driver of the EV/FCFF ratio’s volatility. The ratio’s movement suggests shifts in market expectations regarding the firm’s future growth and profitability.