Enterprise Value to FCFF (EV/FCFF)
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- Income Statement
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
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Free Cash Flow to The Firm (FCFF)
SLB N.V., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial information indicates fluctuations in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the five-year period. A review of the figures reveals distinct trends and patterns worthy of note.
- Net Cash from Operations
- Net cash provided by operating activities decreased from US$4,651 million in 2021 to US$3,720 million in 2022, representing a decline of approximately 20%. However, a substantial recovery occurred in 2023, with operating cash flow increasing to US$6,637 million. This level was largely maintained in subsequent years, with figures of US$6,602 million in 2024 and US$6,489 million in 2025. The 2023-2025 figures demonstrate relative stability after the initial decline and subsequent recovery.
- Free Cash Flow to the Firm (FCFF)
- FCFF mirrored the trend observed in operating cash flow, experiencing a significant decrease from US$3,451 million in 2021 to US$1,879 million in 2022, a reduction of over 45%. Similar to operating cash flow, FCFF rebounded strongly in 2023, reaching US$4,445 million. This upward trend continued, albeit at a slower pace, with FCFF reported at US$4,402 million in 2024 and US$4,565 million in 2025. The FCFF figures suggest a strengthening of the firm’s ability to generate cash available to all investors following the downturn in 2022.
- Relationship between Operating Cash Flow and FCFF
- A consistent relationship exists between net cash from operating activities and FCFF. The fluctuations in operating cash flow are directly reflected in FCFF, indicating that changes in core business operations have a significant impact on the cash available to the firm’s capital providers. The difference between the two figures appears relatively stable across the period, suggesting consistent capital expenditure and other non-operating cash flow items.
Overall, the period under review demonstrates a recovery in cash generation following a downturn in 2022. The subsequent years exhibit relative stability in both operating cash flow and FCFF, suggesting improved financial performance and a strengthened cash position.
Interest Paid, Net of Tax
SLB N.V., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2 2025 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
The effective income tax rate exhibited a slight fluctuation over the five-year period. Cash paid for interest, net of tax, demonstrated a generally stable pattern with a modest increase towards the end of the period.
- Effective Income Tax Rate (EITR)
- The EITR began at 19.00% in 2021, decreased to 18.00% in 2022, and then returned to 19.00% in 2023. A gradual increase to 19.30% in 2024 and 19.60% in 2025 was then observed. This suggests a relatively consistent tax burden with a minor upward trend in recent years.
- Cash Paid for Interest, Net of Tax
- The amount of cash paid for interest, net of tax, was 454 million US dollars in 2021 and increased slightly to 461 million US dollars in 2022. A decrease to 407 million US dollars occurred in 2023, followed by a small increase to 412 million US dollars in 2024. The final year, 2025, saw a more noticeable increase to 450 million US dollars. Overall, the values remained within a relatively narrow range, indicating stable interest expense management, with a late-period return towards the initial levels.
The observed trends suggest a company maintaining a consistent tax position alongside relatively stable net-of-tax interest payments, with a slight increase in both metrics towards the end of the analyzed period.
Enterprise Value to FCFF Ratio, Current
SLB N.V., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2025-12-31).
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
SLB N.V., historical EV/FCFF calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits considerable fluctuation over the observed period. Initial values are relatively high, followed by a period of decline and subsequent stabilization. A detailed examination of the components and the resulting ratio reveals specific trends.
- Enterprise Value
- Enterprise Value increased significantly from 2021 to 2022, rising from US$67,193 million to US$89,522 million. A decrease was then observed in 2023, falling to US$82,899 million, followed by a more substantial decline to US$66,942 million in 2024. The most recent year, 2025, shows a partial recovery to US$82,102 million, approaching the 2023 level.
- Free Cash Flow to the Firm
- Free Cash Flow to the Firm (FCFF) demonstrates a contrasting pattern. It decreased substantially from US$3,451 million in 2021 to US$1,879 million in 2022. However, FCFF then increased notably in 2023 to US$4,445 million, and remained relatively stable in subsequent years, at US$4,402 million in 2024 and US$4,565 million in 2025.
- EV/FCFF Ratio
- The EV/FCFF ratio began at 19.47 in 2021. It increased dramatically to 47.65 in 2022, primarily driven by the increase in Enterprise Value coupled with the decrease in FCFF. The ratio then decreased significantly to 18.65 in 2023, reflecting the substantial increase in FCFF. This downward trend continued to 15.21 in 2024. The ratio experienced a slight increase in 2025, reaching 17.98, indicating a stabilization after the prior declines. The ratio’s volatility suggests sensitivity to changes in both enterprise value and free cash flow generation.
Overall, the observed trends suggest a period of increased valuation followed by a recalibration as free cash flow improved. The recent stabilization of the EV/FCFF ratio indicates a potential equilibrium between valuation and cash flow generation, although continued monitoring is warranted given the historical fluctuations.