Monsanto Co., FCFF calculation

US$ in millions

12 months ended:	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Net income attributable to Monsanto Company	2,260)	1,336)	2,314)	2,740)	2,482)	2,045)
Net (income) loss attributable to noncontrolling interest	13)	(23)	11)	22)	43)	48)
Net noncash charges	1,042)	1,233)	956)	924)	728)	1,070)
Changes in assets and liabilities that provided (required) cash, net of acquisitions	(89)	42)	(173)	(632)	(513)	(112)
Net cash provided by operating activities	3,226)	2,588)	3,108)	3,054)	2,740)	3,051)
Cash payments for interest, net of tax¹	327)	252)	249)	113)	103)	111)
Interest capitalized on construction, net of tax²	34)	21)	20)	19)	17)	15)
Capital expenditures	(1,240)	(923)	(967)	(1,005)	(741)	(646)
Free cash flow to the firm (FCFF)	2,347)	1,938)	2,410)	2,182)	2,119)	2,531)

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Monsanto Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Monsanto Co. FCFF decreased from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.

Monsanto Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Effective Income Tax Rate (EITR)
EITR¹	21.69%	34.91%	27.33%	28.17%	26.68%	30.15%
Interest Paid, Net of Tax
Cash payments for interest, before tax	417)	387)	343)	158)	141)	159)
Less: Cash payments for interest, tax²	90)	135)	94)	45)	38)	48)
Cash payments for interest, net of tax	327)	252)	249)	113)	103)	111)
Interest Costs Capitalized, Net of Tax
Interest capitalized on construction, before tax	44)	32)	27)	27)	23)	21)
Less: Interest capitalized on construction, tax³	10)	11)	7)	8)	6)	6)
Interest capitalized on construction, net of tax	34)	21)	20)	19)	17)	15)

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

¹ See details »

² 2017 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= 417 × 21.69% = 90

³ 2017 Calculation
Interest capitalized on construction, tax = Interest capitalized on construction × EITR
= 44 × 21.69% = 10

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Monsanto Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	58,374)
Free cash flow to the firm (FCFF)	2,347)
Valuation Ratio
EV/FCFF	24.87
Benchmarks
EV/FCFF, Competitors¹
lululemon athletica inc.	21.65
Nike Inc.	15.35

Based on: 10-K (reporting date: 2017-08-31).

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.

Monsanto Co., historical EV/FCFF calculation, comparison to benchmarks

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	59,773)	52,204)	46,537)	59,696)	54,950)	46,106)
Free cash flow to the firm (FCFF)²	2,347)	1,938)	2,410)	2,182)	2,119)	2,531)
Valuation Ratio
EV/FCFF³	25.47	26.94	19.31	27.36	25.93	18.22
Benchmarks
EV/FCFF, Competitors⁴
lululemon athletica inc.	—	—	—	—	—	—
Nike Inc.	—	—	—	—	—	—

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

¹ See details »

² See details »

³ 2017 Calculation
EV/FCFF = EV ÷ FCFF
= 59,773 ÷ 2,347 = 25.47

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.	Monsanto Co. EV/FCFF ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017.

Monsanto Co. (NYSE:MON)

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