GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SK Telecom Co Ltd (NYSE:SKM) » Definitions » Cyclically Adjusted FCF per Share

SK Telecom Co (SK Telecom Co) Cyclically Adjusted FCF per Share : $2.74 (As of Dec. 2023)


View and export this data going back to 1996. Start your Free Trial

What is SK Telecom Co 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.

SK Telecom Co's adjusted free cash flow per share for the three months ended in Dec. 2023 was $0.451. 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 $2.74 for the trailing ten years ended in Dec. 2023.

During the past 12 months, SK Telecom Co's average Cyclically Adjusted FCF Growth Rate was 14.10% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 6.10% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 2.10% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was -0.10% 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 SK Telecom Co was 32.20% per year. The lowest was -13.40% per year. And the median was -0.80% per year.

As of today (2024-04-27), SK Telecom Co's current stock price is $20.61. SK Telecom Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $2.74. SK Telecom Co's Cyclically Adjusted Price-to-FCF of today is 7.52.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of SK Telecom Co was 15.96. The lowest was 6.92. And the median was 9.83.


SK Telecom Co Cyclically Adjusted FCF per Share Historical Data

The historical data trend for SK Telecom Co'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.

SK Telecom Co Cyclically Adjusted FCF per Share Chart

SK Telecom Co 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 3.85 4.04 2.15 2.45 2.74

SK Telecom Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 2.45 2.43 2.53 2.64 2.74

Competitive Comparison of SK Telecom Co's Cyclically Adjusted FCF per Share

For the Telecom Services subindustry, SK Telecom 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.


SK Telecom Co's Cyclically Adjusted Price-to-FCF Distribution in the Telecommunication Services Industry

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

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



SK Telecom Co 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, SK Telecom Co'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)
=0.451/118.8477*118.8477
=0.451

Current CPI (Dec. 2023) = 118.8477.

SK Telecom Co Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.620 99.253 -0.742
201406 0.667 99.353 0.798
201409 0.284 99.608 0.339
201412 0.977 99.098 1.172
201503 -0.307 99.720 -0.366
201506 0.929 100.050 1.104
201509 1.248 100.110 1.482
201512 0.686 100.220 0.814
201603 0.351 100.560 0.415
201606 1.720 100.790 2.028
201609 -0.147 101.460 -0.172
201612 0.538 101.560 0.630
201703 0.579 102.850 0.669
201706 0.915 102.610 1.060
201709 0.743 103.490 0.853
201712 0.037 102.990 0.043
201803 0.788 104.100 0.900
201806 1.776 104.130 2.027
201809 -0.029 105.650 -0.033
201812 -0.062 104.350 -0.071
201903 0.604 104.490 0.687
201906 0.778 104.880 0.882
201909 -0.166 105.200 -0.188
201912 -0.082 105.120 -0.093
202003 -0.173 105.540 -0.195
202006 2.498 104.870 2.831
202009 1.447 106.200 1.619
202012 0.774 105.765 0.870
202103 0.175 107.357 0.194
202106 1.105 107.579 1.221
202109 0.710 108.759 0.776
202112 0.473 109.676 0.513
202203 1.118 111.806 1.188
202206 1.140 114.083 1.188
202209 0.924 114.831 0.956
202212 0.978 115.200 1.009
202303 0.469 116.550 0.478
202306 1.422 117.140 1.443
202309 1.282 119.111 1.279
202312 0.451 118.848 0.451

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


SK Telecom Co  (NYSE:SKM) 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.

SK Telecom Co's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=20.61/2.74
=7.52

* 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 SK Telecom Co was 15.96. The lowest was 6.92. And the median was 9.83.


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.


SK Telecom Co Cyclically Adjusted FCF per Share Related Terms

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


SK Telecom Co (SK Telecom Co) Business Description

Traded in Other Exchanges
Address
SK T-Tower, 65, Eulji-ro, Jung-gu, Seoul, KOR, 04539
SK Telecom is South Korea's largest wireless telecom operator, with 30 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 6.9 million broadband customers and 9.5 million pay TV customers (6.8 million IPTV and 2.7 million Cable TV). While the firm also purchased stakes in businesses in security and semiconductor memory production as well as developing e-commerce and internet platform businesses, these were all spun off into the separate, SK Square business in November 2021. The company was formed after SK Group purchased KT's mobile business in 1994.