Albemarle Corp., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Net income attributable to noncontrolling interests	125,315)	76,270)	70,851)	71,129)	45,577)
Net noncash charges	507,420)	32,593)	438,831)	229,356)	(41,009)
Changes in current assets and liabilities, net of effects of acquisitions and divestitures	(1,414,702)	111,722)	(86,532)	(114,339)	(151,965)
Net cash provided by operating activities	1,907,849)	344,257)	798,914)	719,374)	546,165)
Cash paid during the year for interest, net of capitalization, net of tax¹	77,268)	21,633)	56,688)	38,383)	40,705)
Interest capitalized on significant capital projects, net of tax²	26,093)	39,000)	25,962)	25,459)	15,787)
Capital expenditures	(1,261,646)	(953,667)	(850,477)	(851,796)	(699,991)
Right-of-use assets obtained in exchange for finance lease obligations	(3,976)	(17,096)	—)	(55,806)	—)
Free cash flow to the firm (FCFF)	745,588)	(565,873)	31,086)	(124,386)	(97,333)

Based on: 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), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Albemarle Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Albemarle Corp. FCFF decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Albemarle Corp., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	16.10%	22.00%	14.60%	15.70%	18.20%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of capitalization, before tax	92,095)	27,734)	66,379)	45,532)	49,762)
Less: Cash paid during the year for interest, net of capitalization, tax²	14,827)	6,101)	9,691)	7,149)	9,057)
Cash paid during the year for interest, net of capitalization, net of tax	77,268)	21,633)	56,688)	38,383)	40,705)
Interest Costs Capitalized, Net of Tax
Interest capitalized on significant capital projects, before tax	31,100)	50,000)	30,400)	30,200)	19,300)
Less: Interest capitalized on significant capital projects, tax³	5,007)	11,000)	4,438)	4,741)	3,513)
Interest capitalized on significant capital projects, net of tax	26,093)	39,000)	25,962)	25,459)	15,787)

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ See details »

² 2022 Calculation
Cash paid during the year for interest, net of capitalization, tax = Cash paid during the year for interest, net of capitalization × EITR
= 92,095 × 16.10% = 14,827

³ 2022 Calculation
Interest capitalized on significant capital projects, tax = Interest capitalized on significant capital projects × EITR
= 31,100 × 16.10% = 5,007

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Albemarle Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	22,214,822)
Free cash flow to the firm (FCFF)	745,588)
Valuation Ratio
EV/FCFF	29.80
Benchmarks
EV/FCFF, Competitors¹
Linde plc	36.89
Sherwin-Williams Co.	32.70
EV/FCFF, Sector
Chemicals	42.21
EV/FCFF, Industry
Materials	40.20

Based on: 10-K (reporting date: 2022-12-31).

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.

Albemarle Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	33,896,614)	24,588,783)	21,240,189)	11,695,034)	11,082,644)
Free cash flow to the firm (FCFF)²	745,588)	(565,873)	31,086)	(124,386)	(97,333)
Valuation Ratio
EV/FCFF³	45.46	—	683.27	—	—
Benchmarks
EV/FCFF, Competitors⁴
Linde plc	31.63	23.60	34.03	44.72	—
Sherwin-Williams Co.	43.34	36.70	21.39	27.24	—
EV/FCFF, Sector
Chemicals	34.12	26.76	28.47	36.71	—
EV/FCFF, Industry
Materials	34.36	20.85	30.81	51.04	—

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 33,896,614 ÷ 745,588 = 45.46

⁴ Click competitor name to see calculations.

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Albemarle Corp. (NYSE:ALB)

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