Raytheon Co., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Net loss attributable to noncontrolling interests in subsidiaries	(14)	(27)	(23)	(37)	(7)
Net noncash charges	605)	722)	917)	656)	474)
Changes in assets and liabilities	548)	(176)	(171)	22)	(195)
Net cash provided by operating activities	4,482)	3,428)	2,747)	2,852)	2,346)
Cash paid for interest on commercial paper and long-term debt, net of tax¹	161)	178)	137)	166)	171)
Additions to property, plant and equipment	(942)	(763)	(543)	(561)	(406)
Proceeds from sales of property, plant and equipment	25)	2)	46)	34)	59)
Additions to capitalized internal-use software	(65)	(58)	(68)	(64)	(51)
Free cash flow to the firm (FCFF)	3,661)	2,787)	2,319)	2,427)	2,119)

Based on: 10-K (reporting date: 2019-12-31), 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).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Raytheon Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Raytheon Co. FCFF increased from 2017 to 2018 and from 2018 to 2019.

Raytheon Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR¹	16.50%	8.40%	35.80%	28.30%	26.30%
Interest Paid, Net of Tax
Cash paid for interest on commercial paper and long-term debt, before tax	193)	194)	214)	231)	232)
Less: Cash paid for interest on commercial paper and long-term debt, tax²	32)	16)	77)	65)	61)
Cash paid for interest on commercial paper and long-term debt, net of tax	161)	178)	137)	166)	171)

Based on: 10-K (reporting date: 2019-12-31), 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).

¹ See details »

² 2019 Calculation
Cash paid for interest on commercial paper and long-term debt, tax = Cash paid for interest on commercial paper and long-term debt × EITR
= 193 × 16.50% = 32

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	64,443)
Free cash flow to the firm (FCFF)	3,661)
Valuation Ratio
EV/FCFF	17.60
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	19.40
Caterpillar Inc.	18.37
Eaton Corp. plc	48.30
GE Aerospace	38.51
Honeywell International Inc.	32.92
Lockheed Martin Corp.	20.82
RTX Corp.	29.49
EV/FCFF, Sector
Capital Goods	31.73
EV/FCFF, Industry
Industrials	41.34

Based on: 10-K (reporting date: 2019-12-31).

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.

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

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	64,443)	52,515)	62,981)	46,438)	40,176)
Free cash flow to the firm (FCFF)²	3,661)	2,787)	2,319)	2,427)	2,119)
Valuation Ratio
EV/FCFF³	17.60	18.84	27.15	19.14	18.96
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	—	—	—	—	—
Caterpillar Inc.	16.84	—	—	—	—
Eaton Corp. plc	15.50	—	—	—	—
GE Aerospace	15.85	—	—	—	—
Honeywell International Inc.	21.13	—	—	—	—
Lockheed Martin Corp.	21.21	—	—	—	—
RTX Corp.	21.94	—	—	—	—
EV/FCFF, Sector
Capital Goods	24.73	—	—	—	—
EV/FCFF, Industry
Industrials	31.28	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 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).

¹ See details »

² See details »

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 64,443 ÷ 3,661 = 17.60

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.	Raytheon Co. EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.

Raytheon Co. (NYSE:RTN)

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