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Archer-Daniels Midland Co (FRA:ADM) Cyclically Adjusted Price-to-FCF : (As of May. 18, 2024)


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What is Archer-Daniels Midland Co Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Archer-Daniels Midland Co Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Archer-Daniels Midland Co'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.

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Archer-Daniels Midland Co Cyclically Adjusted Price-to-FCF Chart

Archer-Daniels Midland Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Archer-Daniels Midland Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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Competitive Comparison of Archer-Daniels Midland Co's Cyclically Adjusted Price-to-FCF

For the Farm Products subindustry, Archer-Daniels Midland 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.


Archer-Daniels Midland Co's Cyclically Adjusted Price-to-FCF Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels Midland Co's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Archer-Daniels Midland Co's Cyclically Adjusted Price-to-FCF falls into.



Archer-Daniels Midland Co 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.

Archer-Daniels Midland Co's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Archer-Daniels Midland Co'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)
=0.666/131.7762*131.7762
=0.666

Current CPI (Mar. 2024) = 131.7762.

Archer-Daniels Midland Co Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.263 100.560 1.655
201409 3.843 100.428 5.043
201412 0.287 99.070 0.382
201503 -0.288 99.621 -0.381
201506 0.094 100.684 0.123
201509 0.597 100.392 0.784
201512 0.458 99.792 0.605
201603 -0.233 100.470 -0.306
201606 -0.914 101.688 -1.184
201609 2.178 101.861 2.818
201612 -13.069 101.863 -16.907
201703 -2.727 102.862 -3.494
201706 -1.307 103.349 -1.667
201709 -2.083 104.136 -2.636
201712 -4.583 104.011 -5.806
201803 -5.411 105.290 -6.772
201806 0.320 106.317 0.397
201809 -1.021 106.507 -1.263
201812 -2.156 105.998 -2.680
201903 -3.492 107.251 -4.291
201906 -1.349 108.070 -1.645
201909 -1.789 108.329 -2.176
201912 -3.305 108.420 -4.017
202003 -1.362 108.902 -1.648
202006 0.084 108.767 0.102
202009 -1.931 109.815 -2.317
202012 -1.634 109.897 -1.959
202103 0.185 111.754 0.218
202106 3.602 114.631 4.141
202109 3.843 115.734 4.376
202112 0.449 117.630 0.503
202203 -2.275 121.301 -2.471
202206 0.413 125.017 0.435
202209 6.605 125.227 6.950
202212 -0.593 125.222 -0.624
202303 -3.283 127.348 -3.397
202306 3.756 128.729 3.845
202309 0.956 129.860 0.970
202312 3.685 129.419 3.752
202403 0.666 131.776 0.666

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.


Archer-Daniels Midland Co  (FRA:ADM) 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.


Archer-Daniels Midland Co Cyclically Adjusted Price-to-FCF Related Terms

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Archer-Daniels Midland Co (FRA:ADM) Business Description

Address
77 West Wacker Drive, Suite 4600, Chicago, IL, USA, 60601
Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients and is a large producer of corn-based sweeteners, starches, and ethanol.