Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1, 2 See details »
Item | Description | The company |
---|---|---|
FCFF | Free cash flow to the firm is the cash flow available to the RH suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | RH FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
2 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 133,821 × 21.00% = 28,102
3 2023 Calculation
Capitalized interest for capital projects, tax = Capitalized interest for capital projects × EITR
= 4,903 × 21.00% = 1,030
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | 7,094,484) |
Free cash flow to the firm (FCFF) | 230,622) |
Valuation Ratio | |
EV/FCFF | 30.76 |
Benchmarks | |
EV/FCFF, Competitors1 | |
Amazon.com Inc. | 54.93 |
Home Depot Inc. | 23.09 |
Lowe’s Cos. Inc. | 25.23 |
TJX Cos. Inc. | 30.09 |
EV/FCFF, Sector | |
Consumer Discretionary Distribution & Retail | 47.10 |
EV/FCFF, Industry | |
Consumer Discretionary | 40.04 |
Based on: 10-K (reporting date: 2023-01-28).
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
Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Enterprise value (EV)1 | 7,068,341) | 7,899,389) | 13,601,921) | 3,549,916) | 3,033,712) | 2,906,594) | |
Free cash flow to the firm (FCFF)2 | 230,622) | 430,417) | 355,469) | 242,925) | 190,818) | 444,067) | |
Valuation Ratio | |||||||
EV/FCFF3 | 30.65 | 18.35 | 38.26 | 14.61 | 15.90 | 6.55 | |
Benchmarks | |||||||
EV/FCFF, Competitors4 | |||||||
Amazon.com Inc. | 45.92 | — | — | 78.83 | 74.39 | — | |
Home Depot Inc. | 27.17 | 25.12 | 20.22 | 19.11 | 21.30 | — | |
Lowe’s Cos. Inc. | 19.56 | 19.56 | 14.88 | 20.95 | 18.88 | — | |
TJX Cos. Inc. | 31.93 | 33.03 | 18.30 | 19.08 | 21.16 | — | |
EV/FCFF, Sector | |||||||
Consumer Discretionary Distribution & Retail | 38.32 | 111.04 | 130.00 | 51.35 | 42.44 | — | |
EV/FCFF, Industry | |||||||
Consumer Discretionary | 32.71 | 50.20 | 59.78 | 45.72 | 30.57 | — |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 7,068,341 ÷ 230,622 = 30.65
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. | RH EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |