Carrier Global Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to common shareowners	3,534)	1,664)	1,982)
Non-controlling interest in subsidiaries’ earnings from operations	50)	37)	24)
Net noncash charges	(1,505)	219)	(400)
Changes in operating assets and liabilities	(336)	317)	86)
Net cash flows provided by operating activities	1,743)	2,237)	1,692)
Interest paid, net of amounts capitalized, net of tax¹	248)	225)	138)
Capital expenditures	(353)	(344)	(312)
Free cash flow to the firm (FCFF)	1,638)	2,118)	1,518)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Carrier Global Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Carrier Global Corp. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Carrier Global Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	16.50%	29.10%	29.70%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax	297)	317)	196)
Less: Interest paid, net of amounts capitalized, tax²	49)	92)	58)
Interest paid, net of amounts capitalized, net of tax	248)	225)	138)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² 2022 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 297 × 16.50% = 49

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Carrier Global Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	39,576)
Free cash flow to the firm (FCFF)	1,638)
Valuation Ratio
EV/FCFF	24.16
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	19.76
Caterpillar Inc.	19.48
Eaton Corp. plc	46.84
GE Aerospace	38.95
Honeywell International Inc.	31.63
Lockheed Martin Corp.	21.15
RTX Corp.	29.70
EV/FCFF, Sector
Capital Goods	32.90
EV/FCFF, Industry
Industrials	30.91

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.

Carrier Global Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	42,670)	46,441)	39,816)
Free cash flow to the firm (FCFF)²	1,638)	2,118)	1,518)
Valuation Ratio
EV/FCFF³	26.05	21.93	26.23
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	37.53	—	—
Caterpillar Inc.	23.54	20.50	23.83
Eaton Corp. plc	33.44	38.16	21.94
GE Aerospace	17.29	56.53	32.34
Honeywell International Inc.	29.82	25.22	26.49
Lockheed Martin Corp.	19.69	13.92	14.64
RTX Corp.	28.45	27.29	35.26
EV/FCFF, Sector
Capital Goods	25.87	32.16	74.97
EV/FCFF, Industry
Industrials	24.88	28.41	72.49

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 42,670 ÷ 1,638 = 26.05

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.	Carrier Global Corp. EV/FCFF ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Carrier Global Corp. (NYSE:CARR)

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