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Ares Commercial Real Estate (STU:41I) Cyclically Adjusted Price-to-FCF : 6.26 (As of May. 19, 2024)


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What is Ares Commercial Real Estate Cyclically Adjusted Price-to-FCF?

As of today (2024-05-19), Ares Commercial Real Estate's current share price is €6.20. Ares Commercial Real Estate's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €0.99. Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF for today is 6.26.

The historical rank and industry rank for Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

STU:41I' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.02   Med: 9.47   Max: 16.24
Current: 6.25

During the past years, Ares Commercial Real Estate's highest Cyclically Adjusted Price-to-FCF was 16.24. The lowest was 6.02. And the median was 9.47.

STU:41I's Cyclically Adjusted Price-to-FCF is ranked better than
77.84% of 388 companies
in the REITs industry
Industry Median: 11.61 vs STU:41I: 6.25

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.

Ares Commercial Real Estate's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €0.192. 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 €0.99 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ares Commercial Real Estate Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Ares Commercial Real Estate'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.

Ares Commercial Real Estate Cyclically Adjusted Price-to-FCF Chart

Ares Commercial Real Estate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 15.32 9.37 9.55

Ares Commercial Real Estate Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 8.12 8.87 8.18 9.55 6.83

Competitive Comparison of Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF

For the REIT - Mortgage subindustry, Ares Commercial Real Estate'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.


Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF falls into.



Ares Commercial Real Estate 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.

Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=6.20/0.99
=6.26

* 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.

Ares Commercial Real Estate's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Ares Commercial Real Estate'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)
=0.192/131.7762*131.7762
=0.192

Current CPI (Mar. 2024) = 131.7762.

Ares Commercial Real Estate Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -1.292 100.560 -1.693
201409 0.732 100.428 0.960
201412 -5.916 99.070 -7.869
201503 4.058 99.621 5.368
201506 3.037 100.684 3.975
201509 -0.574 100.392 -0.753
201512 2.276 99.792 3.005
201603 0.559 100.470 0.733
201606 0.488 101.688 0.632
201609 -1.039 101.861 -1.344
201612 -0.156 101.863 -0.202
201703 0.204 102.862 0.261
201706 0.213 103.349 0.272
201709 0.319 104.136 0.404
201712 0.218 104.011 0.276
201803 0.275 105.290 0.344
201806 0.252 106.317 0.312
201809 0.303 106.507 0.375
201812 0.335 105.998 0.416
201903 0.209 107.251 0.257
201906 0.293 108.070 0.357
201909 0.269 108.329 0.327
201912 0.236 108.420 0.287
202003 0.228 108.902 0.276
202006 0.156 108.767 0.189
202009 0.217 109.815 0.260
202012 0.220 109.897 0.264
202103 0.240 111.754 0.283
202106 0.198 114.631 0.228
202109 0.189 115.734 0.215
202112 0.338 117.630 0.379
202203 0.309 121.301 0.336
202206 0.240 125.017 0.253
202209 0.238 125.227 0.250
202212 0.259 125.222 0.273
202303 0.193 127.348 0.200
202306 0.202 128.729 0.207
202309 0.232 129.860 0.235
202312 0.171 129.419 0.174
202403 0.192 131.776 0.192

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.


Ares Commercial Real Estate  (STU:41I) 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.


Ares Commercial Real Estate Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Ares Commercial Real Estate's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Ares Commercial Real Estate (STU:41I) Business Description

Traded in Other Exchanges
Address
245 Park Avenue, 42nd Floor, New York, NY, USA, 10167
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. The company operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

Ares Commercial Real Estate (STU:41I) Headlines

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