Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Warner Bros. Discovery Inc., FCFF calculation
US$ in millions
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).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Warner Bros. Discovery Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Warner Bros. Discovery Inc. FCFF decreased from 2019 to 2020 but then slightly increased from 2020 to 2021. |
Interest Paid, Net of Tax
Warner Bros. Discovery Inc., interest paid, net of tax calculation
US$ in millions
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
Cash paid for interest, tax = Cash paid for interest × EITR
= 664 × 16.00% = 106
Enterprise Value to FCFF Ratio, Current
Warner Bros. Discovery Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 37,871) |
| Free cash flow to the firm (FCFF) | 2,983) |
| Valuation Ratio | |
| EV/FCFF | 12.70 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Alphabet Inc. | 29.67 |
| Comcast Corp. | 16.30 |
| Meta Platforms Inc. | 31.34 |
| Netflix Inc. | 51.22 |
| Walt Disney Co. | 24.02 |
| EV/FCFF, Sector | |
| Media & Entertainment | 32.96 |
| EV/FCFF, Industry | |
| Communication Services | 40.02 |
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
Warner Bros. Discovery 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 millions) | ||||||
| Enterprise value (EV)1 | 26,581) | 42,035) | 28,601) | 33,012) | 16,764) | |
| Free cash flow to the firm (FCFF)2 | 2,983) | 2,862) | 3,790) | 2,925) | 1,726) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 8.91 | 14.69 | 7.55 | 11.29 | 9.71 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Alphabet Inc. | 27.17 | 29.53 | 28.19 | — | — | |
| Comcast Corp. | 15.77 | 20.50 | 18.00 | — | — | |
| Meta Platforms Inc. | 15.40 | 29.48 | 25.83 | — | — | |
| Netflix Inc. | 335.37 | 95.41 | — | — | — | |
| Walt Disney Co. | 78.66 | 63.77 | 143.18 | — | — | |
| EV/FCFF, Sector | ||||||
| Media & Entertainment | 24.79 | 31.56 | 32.03 | — | — | |
| EV/FCFF, Industry | ||||||
| Communication Services | 31.50 | 25.72 | 24.63 | — | — | |
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
= 26,581 ÷ 2,983 = 8.91
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Warner Bros. Discovery Inc. EV/FCFF ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |