Colgate-Palmolive Co., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Net income attributable to noncontrolling interests	182)	172)	165)	160)	158)
Net noncash charges	1,315)	1,184)	478)	541)	653)
Cash effects of changes in assets and liabilities	(726)	(197)	381)	65)	(155)
Net cash provided by operations	2,556)	3,325)	3,719)	3,133)	3,056)
Interest paid, net of tax¹	112)	147)	147)	142)	148)
Interest capitalized, net of tax²	4)	2)	1)	1)	2)
Capital expenditures	(696)	(567)	(410)	(335)	(436)
Free cash flow to the firm (FCFF)	1,975)	2,907)	3,457)	2,940)	2,769)

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 Colgate-Palmolive Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Colgate-Palmolive Co. FCFF decreased from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	26.10%	24.30%	21.60%	23.40%	23.90%
Interest Paid, Net of Tax
Interest paid, before tax	151)	194)	188)	185)	194)
Less: Interest paid, tax²	39)	47)	41)	43)	46)
Interest paid, net of tax	112)	147)	147)	142)	148)
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax	5)	3)	1)	1)	2)
Less: Interest capitalized, tax³	1)	1)	—)	—)	—)
Interest capitalized, net of tax	4)	2)	1)	1)	2)

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
Interest paid, tax = Interest paid × EITR
= 151 × 26.10% = 39

³ 2022 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 5 × 26.10% = 1

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Colgate-Palmolive Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	70,910)
Free cash flow to the firm (FCFF)	1,975)
Valuation Ratio
EV/FCFF	35.90
Benchmarks
EV/FCFF, Competitors¹
Procter & Gamble Co.	23.42
EV/FCFF, Industry
Consumer Staples	34.39

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.

Colgate-Palmolive Co., 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 millions)
Enterprise value (EV)¹	68,823)	73,300)	73,870)	72,618)	63,413)
Free cash flow to the firm (FCFF)²	1,975)	2,907)	3,457)	2,940)	2,769)
Valuation Ratio
EV/FCFF³	34.84	25.21	21.37	24.70	22.90
Benchmarks
EV/FCFF, Competitors⁴
Procter & Gamble Co.	26.63	22.86	23.81	25.13	—
EV/FCFF, Industry
Consumer Staples	27.96	19.75	21.80	22.08	—

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
= 68,823 ÷ 1,975 = 34.84

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.	Colgate-Palmolive Co. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co. (NYSE:CL)

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