Enterprise Value to FCFF (EV/FCFF)
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- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Free Cash Flow to The Firm (FCFF)
Walt Disney Co., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).
1, 2 See details »
- Cash Provided by Operations
- The cash provided by operations demonstrated an overall increasing trend over the six-year period. Starting from 5,984 million USD in 2019, it rose significantly to 7,616 million USD in 2020. Although there was a decline to 5,566 million USD in 2021, the figure stabilized in 2022 at 6,002 million USD. Thereafter, a strong upward trend is evident, with values reaching 9,866 million USD in 2023 and further increasing to 13,971 million USD in 2024. This indicates an improvement in operational cash generation efficiency particularly in the last two years.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm also displayed positive growth over the period, albeit with some fluctuations. It started at 2,176 million USD in 2019, then more than doubled in 2020 to 4,950 million USD. A decline followed in the next two years, to 4,046 million USD in 2021 and further down to 2,367 million USD in 2022. However, similar to operational cash flow, the FCFF rebounded strongly afterwards, rising to 6,657 million USD in 2023 and reaching 10,482 million USD in 2024. This pattern suggests that, despite some mid-period challenges, the company's ability to generate free cash flow significantly improved in the latter years.
Interest Paid, Net of Tax
Walt Disney Co., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).
2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= × =
3 2024 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate displayed a marked decline from 21.7% in 2019 to a low of 1% in 2021, indicating a significant reduction in the tax burden during this period. However, a substantial increase occurred in 2022, with the rate rising sharply to 32.8%. This was followed by a gradual decrease over the next two years, falling to 28.9% in 2023 and further to 23.7% in 2024. Overall, the tax rate showed considerable volatility, with the 2024 rate closely approaching the 2019 level.
- Interest Paid, Net of Tax
- The net interest paid increased steadily from 894 million USD in 2019 to 1,873 million USD in 2021, more than doubling in two years. This was followed by a notable drop to 1,132 million USD in 2022, suggesting a reduction in debt servicing costs or refinancing changes. However, the interest expenses rose again in subsequent years, reaching 1,500 million USD in 2023 and further increasing to 1,628 million USD in 2024. The overall trend reflects periods of both expansion and contraction in interest expense obligations.
- Interest Capitalized, Net of Tax
- The interest capitalized fluctuated within a narrower range compared to net interest paid. It started at 174 million USD in 2019, dipped to 124 million USD in 2020, and then increased again to 185 million USD in 2021. The figure remained relatively stable at 175 million USD in 2022 before rising more significantly to 260 million USD in 2023 and 295 million USD in 2024. This upward trajectory in the last two years suggests increasing investment activities or capital projects for which interest costs are being capitalized.
Enterprise Value to FCFF Ratio, Current
Walt Disney Co., 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, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Netflix Inc. | |
| Take-Two Interactive Software Inc. | |
| EV/FCFF, Sector | |
| Media & Entertainment | |
| EV/FCFF, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2024-09-28).
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
Walt Disney Co., historical EV/FCFF calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Free cash flow to the firm (FCFF)2 | |||||||
| Valuation Ratio | |||||||
| EV/FCFF3 | |||||||
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Alphabet Inc. | |||||||
| Comcast Corp. | |||||||
| Meta Platforms Inc. | |||||||
| Netflix Inc. | |||||||
| Take-Two Interactive Software Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Media & Entertainment | |||||||
| EV/FCFF, Industry | |||||||
| Communication Services | |||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- Over the analyzed period, the enterprise value exhibited relative stability from 2019 through 2021, with marginal increases year-over-year. However, a notable decline occurred in 2022 followed by a slight decrease in 2023. In the most recent year, a partial recovery is observed, though the EV remains below the earlier years' peak levels.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm demonstrated significant variability throughout the period. After starting at a modest level in 2019, it more than doubled in 2020, followed by a decrease in 2021. A further decline is evident in 2022 before a substantial increase in 2023, culminating in the highest value observed in 2024. This upward trajectory in the last two years indicates improved cash generation capabilities.
- EV/FCFF Ratio
- The ratio of enterprise value to free cash flow to the firm has shown a consistent downward trend overall, suggesting an improving valuation metric relative to cash flow. The ratio fell sharply from a very high multiple in 2019 to significantly lower multiples by 2024. This decline is largely driven by the increase in FCFF alongside a declining or relatively subdued enterprise value, reflecting enhanced operational cash flow performance relative to market valuation.
- Summary of Trends and Insights
- The data reveals that while the enterprise value decreased after 2021, free cash flow exhibited strong growth, leading to a lower EV/FCFF ratio. This implies that the company has become more efficient at generating cash flow relative to its valuation, potentially signaling improved operational efficiency or cash management. The lower ratio may also suggest that the company's shares became more attractive from a value perspective over the recent years. The recovery in enterprise value in the latest year accompanying the peak in FCFF suggests a positive market response to stronger cash flow fundamentals.