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Emerson Electric Co (Emerson Electric Co) Cyclically Adjusted FCF per Share : $4.19 (As of Dec. 2023)


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What is Emerson Electric Co Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Emerson Electric Co's adjusted free cash flow per share for the three months ended in Dec. 2023 was $0.590. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $4.19 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Emerson Electric Co's average Cyclically Adjusted FCF Growth Rate was -7.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 3.10% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 3.50% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 2.60% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Emerson Electric Co was 11.50% per year. The lowest was 0.70% per year. And the median was 6.80% per year.

As of today (2024-04-29), Emerson Electric Co's current stock price is $109.76. Emerson Electric Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $4.19. Emerson Electric Co's Cyclically Adjusted Price-to-FCF of today is 26.20.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Emerson Electric Co was 27.34. The lowest was 11.66. And the median was 18.33.


Emerson Electric Co Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Emerson Electric Co's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emerson Electric Co Cyclically Adjusted FCF per Share Chart

Emerson Electric Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.82 3.86 4.19 4.56 4.23

Emerson Electric Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.54 4.53 4.55 4.23 4.19

Competitive Comparison of Emerson Electric Co's Cyclically Adjusted FCF per Share

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Emerson Electric Co's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emerson Electric Co's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Emerson Electric Co's Cyclically Adjusted Price-to-FCF falls into.



Emerson Electric Co Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Emerson Electric Co's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.59/129.4194*129.4194
=0.590

Current CPI (Dec. 2023) = 129.4194.

Emerson Electric Co Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.587 99.695 0.762
201406 1.197 100.560 1.541
201409 1.901 100.428 2.450
201412 0.524 99.070 0.685
201503 0.301 99.621 0.391
201506 0.511 100.684 0.657
201509 1.563 100.392 2.015
201512 0.556 99.792 0.721
201603 0.982 100.470 1.265
201606 0.972 101.688 1.237
201609 1.257 101.861 1.597
201612 0.214 101.863 0.272
201703 0.121 102.862 0.152
201706 0.842 103.349 1.054
201709 1.058 104.136 1.315
201712 0.548 104.011 0.682
201803 0.627 105.290 0.771
201806 1.270 106.317 1.546
201809 1.141 106.507 1.386
201812 0.268 105.998 0.327
201903 0.670 107.251 0.808
201906 1.333 108.070 1.596
201909 1.627 108.329 1.944
201912 0.505 108.420 0.603
202003 0.781 108.902 0.928
202006 1.230 108.767 1.464
202009 1.697 109.815 2.000
202012 1.140 109.897 1.343
202103 1.173 111.754 1.358
202106 1.623 114.631 1.832
202109 1.334 115.734 1.492
202112 0.752 117.630 0.827
202203 0.629 121.301 0.671
202206 1.142 125.017 1.182
202209 1.879 125.227 1.942
202212 0.612 125.222 0.633
202303 0.010 127.348 0.010
202306 1.256 128.729 1.263
202309 -1.412 129.860 -1.407
202312 0.590 129.419 0.590

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Emerson Electric Co  (NYSE:EMR) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Emerson Electric Co's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=109.76/4.19
=26.20

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Emerson Electric Co was 27.34. The lowest was 11.66. And the median was 18.33.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Emerson Electric Co Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Emerson Electric Co's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Emerson Electric Co (Emerson Electric Co) Business Description

Address
8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136
Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm's geographic sales come from the Americas.
Executives
Ram R. Krishnan officer: Executive Vice Pres & COO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Surendralal Lanca Karsanbhai officer: Exec Pres Auto Sols C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Mckelvey James Morgan Jr. director 2645 SOUTH BAYSHORE #802, MIAMI FL 33133
Joshua B. Bolten director ROCK CREEK GLOBAL ADVISORS, 1401 I STREET NW, SUITE 1120, WASHINGTON DC 20005
Arthur F Golden director 450 LEXINGTON AVE, NEW YORK NY 10017
Easter William H Iii director 370 17TH ST, STE 2500, DENVER CO 80202
Vidya Ramnath officer: Senior VP & CMO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Nicholas J. Piazza officer: Senior VP & CPO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Lisa Flavin officer: Sr. VP & CCO 8300 MARYLAND AVENUE, ST. LOUIS MO 63105
Leticia Goncalves Lourenco director C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Peter Zornio officer: Chief Technology Officer C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Sara Yang Bosco officer: Sr. VP, Secy & Gen. Counsel 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Frank J Dellaquila officer: Sr. V. P. and Controller C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Mark J Bulanda officer: VP-Acquisitions & Development 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Elizabeth Adefioye officer: Chief People Officer 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154

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