Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2023-12-31), 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).
Item | Description | The company |
---|---|---|
FCFF | Free cash flow to the firm is the cash flow available to the GE Aerospace suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | GE Aerospace FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2023-12-31), 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).
2 2023 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 1,067 × 11.40% = 122
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 174,315) |
Free cash flow to the firm (FCFF) | 5,009) |
Valuation Ratio | |
EV/FCFF | 34.80 |
Benchmarks | |
EV/FCFF, Competitors1 | |
Boeing Co. | 20.72 |
Caterpillar Inc. | 15.99 |
Eaton Corp. plc | 37.86 |
Honeywell International Inc. | 29.16 |
Lockheed Martin Corp. | 21.77 |
RTX Corp. | 29.06 |
EV/FCFF, Sector | |
Capital Goods | 24.58 |
EV/FCFF, Industry | |
Industrials | 25.99 |
Based on: 10-K (reporting date: 2023-12-31).
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
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 148,093) | 97,249) | 114,873) | 135,492) | 149,810) | |
Free cash flow to the firm (FCFF)2 | 5,009) | 5,624) | 2,032) | 4,189) | 9,454) | |
Valuation Ratio | ||||||
EV/FCFF3 | 29.56 | 17.29 | 56.53 | 32.34 | 15.85 | |
Benchmarks | ||||||
EV/FCFF, Competitors4 | ||||||
Boeing Co. | 25.63 | 37.53 | — | — | — | |
Caterpillar Inc. | 16.08 | 23.54 | 20.50 | 23.83 | 16.84 | |
Eaton Corp. plc | 38.49 | 33.44 | 38.16 | 21.94 | 15.50 | |
Honeywell International Inc. | 29.13 | 29.82 | 25.22 | 26.49 | 21.13 | |
Lockheed Martin Corp. | 17.62 | 19.69 | 13.92 | 14.64 | 21.21 | |
RTX Corp. | 23.86 | 28.45 | 27.29 | 35.26 | 21.94 | |
EV/FCFF, Sector | ||||||
Capital Goods | 23.34 | 25.87 | 32.16 | 74.97 | 24.73 | |
EV/FCFF, Industry | ||||||
Industrials | 25.67 | 24.88 | 28.41 | 72.49 | 31.28 |
Based on: 10-K (reporting date: 2023-12-31), 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).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 148,093 ÷ 5,009 = 29.56
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. | GE Aerospace EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |