Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
Item | Description | The company |
---|---|---|
FCFF | Free cash flow to the firm is the cash flow available to the McKesson Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | McKesson Corp. FCFF decreased from 2014 to 2015 but then increased from 2015 to 2016 exceeding 2014 level. |
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
1 2016 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × 908 ÷ 3,250 = 27.94%
2 2016 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 337 × 27.94% = 94
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 40,477) |
Free cash flow to the firm (FCFF) | 3,238) |
Valuation Ratio | |
EV/FCFF | 12.50 |
Benchmarks | |
EV/FCFF, Competitors1 | |
Abbott Laboratories | 37.08 |
Cigna Group | 9.72 |
CVS Health Corp. | 9.98 |
Elevance Health Inc. | 10.71 |
Humana Inc. | 7.51 |
Intuitive Surgical Inc. | 250.60 |
Medtronic PLC | 21.45 |
UnitedHealth Group Inc. | 20.91 |
Based on: 10-K (reporting date: 2016-03-31).
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
Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 43,051) | 57,740) | 49,411) | 27,034) | 22,057) | 21,278) | |
Free cash flow to the firm (FCFF)2 | 3,238) | 2,816) | 2,882) | 2,221) | 2,714) | 2,119) | |
Valuation Ratio | |||||||
EV/FCFF3 | 13.30 | 20.51 | 17.15 | 12.17 | 8.13 | 10.04 | |
Benchmarks | |||||||
EV/FCFF, Competitors4 | |||||||
Abbott Laboratories | — | — | — | — | — | — | |
Cigna Group | — | — | — | — | — | — | |
CVS Health Corp. | — | — | — | — | — | — | |
Elevance Health Inc. | — | — | — | — | — | — | |
Humana Inc. | — | — | — | — | — | — | |
Intuitive Surgical Inc. | — | — | — | — | — | — | |
Medtronic PLC | — | — | — | — | — | — | |
UnitedHealth Group Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
3 2016 Calculation
EV/FCFF = EV ÷ FCFF
= 43,051 ÷ 3,238 = 13.30
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. | McKesson Corp. EV/FCFF ratio increased from 2014 to 2015 but then decreased significantly from 2015 to 2016. |