LyondellBasell Industries N.V., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Net (income) loss attributable to non-controlling interests	2)	(2)	1)	(2)	(6)
Net noncash charges	688)	922)	1,646)	1,614)	2,105)
Changes in assets and liabilities that provided (used) cash	93)	(593)	123)	(246)	(225)
Net cash provided by operating activities	5,471)	5,206)	5,606)	5,842)	6,048)
Interest paid, net of capitalized interest, net of tax¹	295)	297)	230)	216)	232)
Capitalized interest, net of tax²	40)	18)	24)	8)	18)
Expenditures for property, plant and equipment	(2,105)	(1,547)	(2,243)	(1,440)	(1,499)
Free cash flow to the firm (FCFF)	3,700)	3,974)	3,617)	4,626)	4,800)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

^{1, 2} See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the LyondellBasell Industries N.V. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	LyondellBasell Industries N.V. FCFF increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

LyondellBasell Industries N.V., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Earnings before tax (EBT)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Add: Net income attributable to noncontrolling interest	2)	(2)	1)	(2)	(6)
Less: Loss from discontinued operations, net of tax	(8)	(18)	(10)	(5)	(4)
Add: Income tax expense	613)	598)	1,386)	1,730)	1,540)
EBT	5,311)	5,493)	5,233)	6,209)	5,712)
Effective Income Tax Rate (EITR)
EITR¹	11.54%	10.89%	26.49%	27.86%	26.96%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax	333)	333)	313)	299)	318)
Less: Interest paid, net of capitalized interest, tax²	38)	36)	83)	83)	86)
Interest paid, net of capitalized interest, net of tax	295)	297)	230)	216)	232)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	45)	20)	33)	11)	25)
Less: Capitalized interest, tax³	5)	2)	9)	3)	7)
Capitalized interest, net of tax	40)	18)	24)	8)	18)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ 2018 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × 613 ÷ 5,311 = 11.54%

² 2018 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 333 × 11.54% = 38

³ 2018 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 45 × 11.54% = 5

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LyondellBasell Industries N.V., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	33,643)
Free cash flow to the firm (FCFF)	3,700)
Valuation Ratio
EV/FCFF	9.09
Benchmarks
EV/FCFF, Competitors¹
Linde plc	39.97

Based on: 10-K (reporting date: 2018-12-31).

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.

LyondellBasell Industries N.V., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	40,964)	49,514)	44,380)	39,738)	47,425)
Free cash flow to the firm (FCFF)²	3,700)	3,974)	3,617)	4,626)	4,800)
Valuation Ratio
EV/FCFF³	11.07	12.46	12.27	8.59	9.88
Benchmarks
EV/FCFF, Competitors⁴
Linde plc	—	—	—	—	—

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ See details »

² See details »

³ 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 40,964 ÷ 3,700 = 11.07

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.	LyondellBasell Industries N.V. EV/FCFF ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

LyondellBasell Industries N.V. (NYSE:LYB)

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