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The Descartes Systems Group (The Descartes Systems Group) Cyclically Adjusted Price-to-FCF : 67.05 (As of May. 01, 2024)


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What is The Descartes Systems Group Cyclically Adjusted Price-to-FCF?

As of today (2024-05-01), The Descartes Systems Group's current share price is $95.88. The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $1.43. The Descartes Systems Group's Cyclically Adjusted Price-to-FCF for today is 67.05.

The historical rank and industry rank for The Descartes Systems Group's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

DSGX' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 41.54   Med: 59.87   Max: 110.09
Current: 66.4

During the past years, The Descartes Systems Group's highest Cyclically Adjusted Price-to-FCF was 110.09. The lowest was 41.54. And the median was 59.87.

DSGX's Cyclically Adjusted Price-to-FCF is ranked worse than
74.93% of 670 companies
in the Software industry
Industry Median: 28.19 vs DSGX: 66.40

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.

The Descartes Systems Group's adjusted free cash flow per share data for the three months ended in Jan. 2024 was $0.576. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $1.43 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Descartes Systems Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Descartes Systems Group's Cyclically Adjusted Price-to-FCF 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.

The Descartes Systems Group Cyclically Adjusted Price-to-FCF Chart

The Descartes Systems Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.14 73.74 69.62 59.19 61.21

The Descartes Systems Group Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF 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 59.19 62.31 57.29 53.62 61.21

Competitive Comparison of The Descartes Systems Group's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, The Descartes Systems Group'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.


The Descartes Systems Group's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, The Descartes Systems Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



The Descartes Systems Group Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

The Descartes Systems Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=95.88/1.43
=67.05

* 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.

The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, The Descartes Systems Group's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.576/125.4675*125.4675
=0.576

Current CPI (Jan. 2024) = 125.4675.

The Descartes Systems Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.121 98.920 0.153
201407 0.222 99.315 0.280
201410 0.148 99.473 0.187
201501 0.162 98.209 0.207
201504 0.143 99.710 0.180
201507 0.150 100.579 0.187
201510 0.160 100.500 0.200
201601 0.201 100.184 0.252
201604 0.191 101.370 0.236
201607 0.195 101.844 0.240
201610 0.255 102.002 0.314
201701 0.243 102.318 0.298
201704 0.205 103.029 0.250
201707 0.211 103.029 0.257
201710 0.216 103.424 0.262
201801 0.237 104.056 0.286
201804 0.230 105.320 0.274
201807 0.222 106.110 0.262
201810 0.232 105.952 0.275
201901 0.252 105.557 0.300
201904 0.282 107.453 0.329
201907 0.315 108.243 0.365
201910 0.305 107.927 0.355
202001 0.296 108.085 0.344
202004 0.310 107.216 0.363
202007 0.385 108.401 0.446
202010 0.377 108.638 0.435
202101 0.414 109.192 0.476
202104 0.456 110.851 0.516
202107 0.528 112.431 0.589
202110 0.487 113.695 0.537
202201 0.516 114.801 0.564
202204 0.496 118.357 0.526
202207 0.517 120.964 0.536
202210 0.577 121.517 0.596
202301 0.566 121.596 0.584
202304 0.549 123.571 0.557
202307 0.574 124.914 0.577
202310 0.629 125.310 0.630
202401 0.576 125.468 0.576

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


The Descartes Systems Group  (NAS:DSGX) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


The Descartes Systems Group Cyclically Adjusted Price-to-FCF Related Terms

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The Descartes Systems Group (The Descartes Systems Group) Business Description

Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.