Stock Analysis on Net

Carrier Global Corp. (NYSE:CARR)

This company has been moved to the archive! The financial data has not been updated since April 26, 2023.

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Carrier Global Corp., FCFF calculation

US$ in millions

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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).

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.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel
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


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
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. 19.66
Caterpillar Inc. 18.04
Eaton Corp. plc 47.00
GE Aerospace 38.35
Honeywell International Inc. 33.00
Lockheed Martin Corp. 20.57
RTX Corp. 29.22
EV/FCFF, Sector
Capital Goods 32.33
EV/FCFF, Industry
Industrials 30.22

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
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.

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.