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Extreme Networks (LTS:0IJW) Cyclically Adjusted FCF per Share : $0.63 (As of Mar. 2024)


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What is Extreme Networks 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.

Extreme Networks's adjusted free cash flow per share for the three months ended in Mar. 2024 was $-0.569. 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 $0.63 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Extreme Networks's average Cyclically Adjusted FCF Growth Rate was 29.20% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 48.10% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 45.60% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 29.80% 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 Extreme Networks was 71.00% per year. The lowest was -17.80% per year. And the median was 37.70% per year.

As of today (2024-05-29), Extreme Networks's current stock price is $11.5595. Extreme Networks's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $0.63. Extreme Networks's Cyclically Adjusted Price-to-FCF of today is 18.35.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Extreme Networks was 478.00. The lowest was 14.19. And the median was 57.66.


Extreme Networks Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Extreme Networks'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.

Extreme Networks Cyclically Adjusted FCF per Share Chart

Extreme Networks Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.13 0.19 0.26 0.38 0.53

Extreme Networks Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.47 0.53 0.60 0.62 0.63

Competitive Comparison of Extreme Networks's Cyclically Adjusted FCF per Share

For the Communication Equipment subindustry, Extreme Networks'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.


Extreme Networks's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Extreme Networks's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Extreme Networks's Cyclically Adjusted Price-to-FCF falls into.



Extreme Networks 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, Extreme Networks's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-0.569/131.7762*131.7762
=-0.569

Current CPI (Mar. 2024) = 131.7762.

Extreme Networks Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.013 100.560 -0.017
201409 -0.014 100.428 -0.018
201412 0.390 99.070 0.519
201503 -0.097 99.621 -0.128
201506 0.023 100.684 0.030
201509 0.058 100.392 0.076
201512 0.065 99.792 0.086
201603 0.034 100.470 0.045
201606 0.085 101.688 0.110
201609 0.075 101.861 0.097
201612 0.062 101.863 0.080
201703 0.197 102.862 0.252
201706 0.115 103.349 0.147
201709 0.094 104.136 0.119
201712 -0.090 104.011 -0.114
201803 -0.214 105.290 -0.268
201806 0.020 106.317 0.025
201809 0.229 106.507 0.283
201812 0.197 105.998 0.245
201903 0.109 107.251 0.134
201906 0.159 108.070 0.194
201909 -0.045 108.329 -0.055
201912 0.150 108.420 0.182
202003 0.016 108.902 0.019
202006 0.051 108.767 0.062
202009 0.178 109.815 0.214
202012 0.268 109.897 0.321
202103 0.157 111.754 0.185
202106 0.370 114.631 0.425
202109 0.277 115.734 0.315
202112 0.142 117.630 0.159
202203 -0.022 121.301 -0.024
202206 0.451 125.017 0.475
202209 0.351 125.227 0.369
202212 0.502 125.222 0.528
202303 0.344 127.348 0.356
202306 0.566 128.729 0.579
202309 0.534 129.860 0.542
202312 0.217 129.419 0.221
202403 -0.569 131.776 -0.569

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


Extreme Networks  (LTS:0IJW) 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.

Extreme Networks's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=11.5595/0.63
=18.35

* 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 Extreme Networks was 478.00. The lowest was 14.19. And the median was 57.66.


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.


Extreme Networks Cyclically Adjusted FCF per Share Related Terms

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


Extreme Networks (LTS:0IJW) Business Description

Industry
Traded in Other Exchanges
Address
2121 RDU Center Drive, Suite 300, Morrisville, NC, USA, 27560
Extreme Networks Inc provides software-driven networking services for enterprise customers. Its products include wired and wireless network infrastructure equipment and software for network management, policy, analytics, and access controls. It offers high-density Wi-Fi, centralized management, cloud-based network management, and application analytics capabilities. The company operates in a single segment which develops and markets network infrastructure equipment. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.

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