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TELUS (TU) Cyclically Adjusted Price-to-FCF : 55.97 (As of May. 01, 2024)


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What is TELUS Cyclically Adjusted Price-to-FCF?

As of today (2024-05-01), TELUS's current share price is $16.23. TELUS's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.29. TELUS's Cyclically Adjusted Price-to-FCF for today is 55.97.

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

TU' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 18.85   Med: 50.58   Max: 86.05
Current: 57.43

During the past years, TELUS's highest Cyclically Adjusted Price-to-FCF was 86.05. The lowest was 18.85. And the median was 50.58.

TU's Cyclically Adjusted Price-to-FCF is ranked worse than
90.53% of 190 companies
in the Telecommunication Services industry
Industry Median: 13.065 vs TU: 57.43

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.

TELUS's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $0.318. 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 $0.29 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


TELUS Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for TELUS'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.

TELUS Cyclically Adjusted Price-to-FCF Chart

TELUS 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 54.53 48.96 72.60 65.73 61.24

TELUS Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 65.73 73.21 68.83 61.54 61.24

Competitive Comparison of TELUS's Cyclically Adjusted Price-to-FCF

For the Telecom Services subindustry, TELUS'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.


TELUS's Cyclically Adjusted Price-to-FCF Distribution in the Telecommunication Services Industry

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

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



TELUS 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.

TELUS's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=16.23/0.29
=55.97

* 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.

TELUS's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, TELUS's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.318/125.4675*125.4675
=0.318

Current CPI (Dec. 2023) = 125.4675.

TELUS Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.129 98.604 -0.164
201406 -0.480 99.473 -0.605
201409 0.332 99.394 0.419
201412 0.166 98.367 0.212
201503 -0.128 99.789 -0.161
201506 -0.947 100.500 -1.182
201509 0.248 100.421 0.310
201512 0.125 99.947 0.157
201603 -0.053 101.054 -0.066
201606 0.087 102.002 0.107
201609 0.207 101.765 0.255
201612 -0.031 101.449 -0.038
201703 -0.055 102.634 -0.067
201706 0.236 103.029 0.287
201709 0.232 103.345 0.282
201712 0.159 103.345 0.193
201803 0.065 105.004 0.078
201806 0.301 105.557 0.358
201809 0.196 105.636 0.233
201812 0.190 105.399 0.226
201903 -0.002 106.979 -0.002
201906 -0.260 107.690 -0.303
201909 0.278 107.611 0.324
201912 0.006 107.769 0.007
202003 0.227 107.927 0.264
202006 0.443 108.401 0.513
202009 0.138 108.164 0.160
202012 0.211 108.559 0.244
202103 -0.038 110.298 -0.043
202106 0.272 111.720 0.305
202109 0.118 112.905 0.131
202112 -0.865 113.774 -0.954
202203 0.070 117.646 0.075
202206 0.132 120.806 0.137
202209 0.250 120.648 0.260
202212 0.174 120.964 0.180
202303 -0.109 122.702 -0.111
202306 0.174 124.203 0.176
202309 0.273 125.230 0.274
202312 0.318 125.468 0.318

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.


TELUS  (NYSE:TU) 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.


TELUS Cyclically Adjusted Price-to-FCF Related Terms

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


TELUS (TU) Business Description

Traded in Other Exchanges
Address
510 West Georgia Street, 23rd Floor, Vancouver, BC, CAN, V6B 0M3
Telus is one of the Big Three wireless service providers in Canada, with its nearly 10 million mobile phone subscribers nationwide constituting about 30% of the total market. It is the incumbent local exchange carrier in the western Canadian provinces of British Columbia and Alberta, where it provides internet, television, and landline phone services. It also has a small wireline presence in eastern Quebec. Mostly because of recent acquisitions, more than 20% of Telus' sales now come from nontelecom businesses, most notably in the international business services, health, security, and agriculture industries. The firm has a 55% economic stake in Telus International.