Air Products & Chemicals Inc., FCFF calculation

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Net income attributable to noncontrolling interests	44,400)	49,400)	35,100)	20,800)	30,400)	39,700)
Net noncash charges	1,373,700)	1,185,800)	1,287,200)	(535,100)	2,066,000)	901,400)
Working capital changes that provided (used) cash, excluding effects of acquisitions	(40,100)	(25,300)	(265,400)	48,000)	(20,100)	218,800)
Cash provided by operating activities	3,264,700)	2,969,900)	2,554,700)	2,534,100)	2,707,400)	2,437,800)
Cash paid for interest, net of amounts capitalized, net of tax¹	53,962)	126,123)	101,434)	102,734)	87,798)	74,100)
Capitalized interest, net of tax²	12,768)	10,922)	16,068)	15,504)	23,853)	37,316)
Additions to plant and equipment, including long-term deposits	(2,509,000)	(1,989,700)	(1,568,400)	(1,039,700)	(1,055,800)	(1,614,800)
Free cash flow to the firm (FCFF)	822,429)	1,117,245)	1,103,802)	1,612,638)	1,763,250)	934,416)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

^{1, 2} See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Air Products & Chemicals Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Air Products & Chemicals Inc. FCFF increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Air Products & Chemicals Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Effective Income Tax Rate (EITR)
EITR¹	19.70%	19.10%	17.60%	18.40%	27.50%	24.00%
Interest Paid, Net of Tax
Cash paid for interest, net of amounts capitalized, before tax	67,200)	155,900)	123,100)	125,900)	121,100)	97,500)
Less: Cash paid for interest, net of amounts capitalized, tax²	13,238)	29,777)	21,666)	23,166)	33,303)	23,400)
Cash paid for interest, net of amounts capitalized, net of tax	53,962)	126,123)	101,434)	102,734)	87,798)	74,100)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	15,900)	13,500)	19,500)	19,000)	32,900)	49,100)
Less: Capitalized interest, tax³	3,132)	2,579)	3,432)	3,496)	9,048)	11,784)
Capitalized interest, net of tax	12,768)	10,922)	16,068)	15,504)	23,853)	37,316)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

¹ See details »

² 2020 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= 67,200 × 19.70% = 13,238

³ 2020 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 15,900 × 19.70% = 3,132

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Air Products & Chemicals Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	62,954,505)
Free cash flow to the firm (FCFF)	822,429)
Valuation Ratio
EV/FCFF	76.55
Benchmarks
EV/FCFF, Competitors¹
Linde plc	39.36
EV/FCFF, Industry
Materials	53.90

Based on: 10-K (reporting date: 2020-09-30).

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.

Air Products & Chemicals Inc., historical EV/FCFF calculation, comparison to benchmarks

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	61,669,949)	52,915,712)	35,745,103)	35,621,405)	35,233,696)	35,850,244)
Free cash flow to the firm (FCFF)²	822,429)	1,117,245)	1,103,802)	1,612,638)	1,763,250)	934,416)
Valuation Ratio
EV/FCFF³	74.99	47.36	32.38	22.09	19.98	38.37
Benchmarks
EV/FCFF, Competitors⁴
Linde plc	34.03	44.72	—	—	—	—
EV/FCFF, Industry
Materials	36.43	79.74	—	—	—	—

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

¹ See details »

² See details »

³ 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 61,669,949 ÷ 822,429 = 74.99

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.	Air Products & Chemicals Inc. EV/FCFF ratio increased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc. (NYSE:APD)

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