Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Lockheed Martin Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Lockheed Martin Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Lockheed Martin Corp. FCFF increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
Interest Paid, Net of Tax
Lockheed Martin Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
2 2024 Calculation
Interest payments, tax = Interest payments × EITR
= 950 × 14.20% = 135
Enterprise Value to FCFF Ratio, Current
Lockheed Martin Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 120,484) |
| Free cash flow to the firm (FCFF) | 6,102) |
| Valuation Ratio | |
| EV/FCFF | 19.74 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 18.14 |
| Eaton Corp. plc | 40.57 |
| GE Aerospace | 39.84 |
| Honeywell International Inc. | 28.10 |
| RTX Corp. | 33.43 |
| EV/FCFF, Sector | |
| Capital Goods | 26.55 |
| EV/FCFF, Industry | |
| Industrials | 28.72 |
Based on: 10-K (reporting date: 2024-12-31).
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
Lockheed Martin Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 125,464) | 122,260) | 130,388) | 113,509) | 100,886) | |
| Free cash flow to the firm (FCFF)2 | 6,102) | 6,940) | 6,624) | 8,153) | 6,891) | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 20.56 | 17.62 | 19.69 | 13.92 | 14.64 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Boeing Co. | — | 25.63 | 37.53 | — | — | |
| Caterpillar Inc. | 18.32 | 16.08 | 23.54 | 20.50 | 23.83 | |
| Eaton Corp. plc | — | 38.49 | 33.44 | 38.16 | 21.94 | |
| GE Aerospace | 38.98 | 29.56 | 17.29 | 56.53 | 32.34 | |
| Honeywell International Inc. | 27.10 | 29.13 | 29.82 | 25.22 | 26.49 | |
| RTX Corp. | 34.48 | 23.86 | 28.45 | 27.29 | 35.26 | |
| EV/FCFF, Sector | ||||||
| Capital Goods | — | 23.34 | 25.87 | 32.16 | 74.97 | |
| EV/FCFF, Industry | ||||||
| Industrials | — | 26.17 | 24.45 | 28.85 | 142.47 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 125,464 ÷ 6,102 = 20.56
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. | Lockheed Martin Corp. EV/FCFF ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |