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NetEase (SGX:K3MD) Cyclically Adjusted FCF per Share : $0.40 (As of Jun. 2024)


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What is NetEase 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.

NetEase's adjusted free cash flow per share for the three months ended in Jun. 2024 was $1.267. 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 $0.40 for the trailing ten years ended in Jun. 2024.

During the past 12 months, NetEase's average Cyclically Adjusted FCF Growth Rate was 17.90% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 17.00% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 17.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 20.70% 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 NetEase was 33.20% per year. The lowest was 15.60% per year. And the median was 18.30% per year.

As of today (2024-10-31), NetEase's current stock price is $9.752. NetEase's Cyclically Adjusted FCF per Share for the quarter that ended in Jun. 2024 was $0.40. NetEase's Cyclically Adjusted Price-to-FCF of today is 24.38.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of NetEase was 58.20. The lowest was 18.53. And the median was 33.99.


NetEase Cyclically Adjusted FCF per Share Historical Data

The historical data trend for NetEase'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.

NetEase Cyclically Adjusted FCF per Share Chart

NetEase Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.30 0.23 0.25 0.42 0.38

NetEase Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 0.33 0.34 0.38 0.36 0.40

Competitive Comparison of NetEase's Cyclically Adjusted FCF per Share

For the Electronic Gaming & Multimedia subindustry, NetEase'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.


NetEase's Cyclically Adjusted Price-to-FCF Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NetEase's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=1.267/114.7809*114.7809
=1.267

Current CPI (Jun. 2024) = 114.7809.

NetEase Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201409 0.253 98.900 0.294
201412 0.384 99.000 0.445
201503 0.439 99.900 0.504
201506 0.122 99.500 0.141
201509 0.468 100.500 0.535
201512 0.648 100.600 0.739
201603 0.661 102.200 0.742
201606 0.696 101.400 0.788
201609 0.808 102.400 0.906
201612 1.072 102.600 1.199
201703 0.796 103.200 0.885
201706 0.385 103.100 0.429
201709 0.235 104.100 0.259
201712 0.694 104.500 0.762
201803 0.199 105.300 0.217
201806 0.058 104.900 0.063
201809 0.085 106.600 0.092
201812 1.095 106.500 1.180
201903 0.499 107.700 0.532
201906 0.869 107.700 0.926
201909 0.715 109.800 0.747
201912 0.985 111.200 1.017
202003 1.312 112.300 1.341
202006 0.795 110.400 0.827
202009 0.919 111.700 0.944
202012 1.698 111.500 1.748
202103 1.081 112.662 1.101
202106 0.858 111.769 0.881
202109 1.305 112.215 1.335
202112 1.802 113.108 1.829
202203 0.877 114.335 0.880
202206 1.378 114.558 1.381
202209 1.466 115.339 1.459
202212 1.864 115.116 1.859
202303 1.007 115.116 1.004
202306 1.477 114.558 1.480
202309 1.783 115.339 1.774
202312 2.411 114.781 2.411
202403 1.913 115.227 1.906
202406 1.267 114.781 1.267

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


NetEase  (SGX:K3MD) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=9.752/0.4
=24.38

* 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 NetEase was 58.20. The lowest was 18.53. And the median was 33.99.


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.


NetEase Cyclically Adjusted FCF per Share Related Terms

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


NetEase Business Description

Address
No. 599 Wangshang Road, NetEase Building, Binjiang District, Hangzhou, CHN, 310052
NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).

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