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Extreme Networks (Extreme Networks) Cyclically Adjusted Price-to-FCF : 18.71 (As of Apr. 28, 2024)


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What is Extreme Networks Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Extreme Networks's current share price is $11.60. Extreme Networks's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.62. Extreme Networks's Cyclically Adjusted Price-to-FCF for today is 18.71.

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

EXTR' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 14.19   Med: 57.66   Max: 478
Current: 18.6

During the past years, Extreme Networks's highest Cyclically Adjusted Price-to-FCF was 478.00. The lowest was 14.19. And the median was 57.66.

EXTR's Cyclically Adjusted Price-to-FCF is ranked better than
66.95% of 953 companies
in the Hardware industry
Industry Median: 27.98 vs EXTR: 18.60

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.

Extreme Networks's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $0.217. 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 $0.62 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Extreme Networks Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Extreme Networks'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.

Extreme Networks Cyclically Adjusted Price-to-FCF Chart

Extreme Networks Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.91 26.37 43.24 24.92 49.91

Extreme Networks 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 41.84 39.59 49.91 40.97 28.28

Competitive Comparison of Extreme Networks's Cyclically Adjusted Price-to-FCF

For the Communication Equipment subindustry, Extreme Networks'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.


Extreme Networks's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Extreme Networks's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Extreme Networks 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=11.60/0.62
=18.71

* 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.

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

For example, Extreme Networks'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)
=0.217/129.4194*129.4194
=0.217

Current CPI (Dec. 2023) = 129.4194.

Extreme Networks Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.318 99.695 -0.413
201406 -0.013 100.560 -0.017
201409 -0.014 100.428 -0.018
201412 0.390 99.070 0.509
201503 -0.097 99.621 -0.126
201506 0.023 100.684 0.030
201509 0.058 100.392 0.075
201512 0.065 99.792 0.084
201603 0.034 100.470 0.044
201606 0.085 101.688 0.108
201609 0.075 101.861 0.095
201612 0.062 101.863 0.079
201703 0.197 102.862 0.248
201706 0.115 103.349 0.144
201709 0.094 104.136 0.117
201712 -0.090 104.011 -0.112
201803 -0.214 105.290 -0.263
201806 0.020 106.317 0.024
201809 0.229 106.507 0.278
201812 0.197 105.998 0.241
201903 0.109 107.251 0.132
201906 0.159 108.070 0.190
201909 -0.045 108.329 -0.054
201912 0.150 108.420 0.179
202003 0.016 108.902 0.019
202006 0.051 108.767 0.061
202009 0.178 109.815 0.210
202012 0.268 109.897 0.316
202103 0.157 111.754 0.182
202106 0.370 114.631 0.418
202109 0.277 115.734 0.310
202112 0.142 117.630 0.156
202203 -0.022 121.301 -0.023
202206 0.451 125.017 0.467
202209 0.351 125.227 0.363
202212 0.502 125.222 0.519
202303 0.344 127.348 0.350
202306 0.566 128.729 0.569
202309 0.534 129.860 0.532
202312 0.217 129.419 0.217

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.


Extreme Networks  (NAS:EXTR) 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.


Extreme Networks Cyclically Adjusted Price-to-FCF Related Terms

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


Extreme Networks (Extreme Networks) Business Description

Industry
Traded in Other Exchanges
Address
2121 RDU Center Drive, Suite 300, Morrisville, NC, USA, 27560
Extreme Networks Inc provides software-driven networking services for enterprise customers. Its products include wired and wireless network infrastructure equipment and software for network management, policy, analytics, and access controls. It offers high-density Wi-Fi, centralized management, cloud-based network management, and application analytics capabilities. The company operates in a single segment which develops and markets network infrastructure equipment. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.
Executives
Edward Meyercord director, officer: President and CEO C/O TALK AMERICA HOLDINGS INC, 12020 SUNRISE VALLEY DR, STE. 1500, RESTON VA 20191
Joseph A Vitalone officer: Chief Revenue Officer CO SHORETEL INC, 960 STEWART DRIVE, SUNNYVALE CA 94085
Raj Khanna director 145 RIO ROBLES, SAN JOSE CA 94134
Kevin R Rhodes officer: EVP Chief Financial Officer 20 HARVARD MILLS SQUARE, WAKEFIELD MA 01880
Edward H Kennedy director C/O TELLABS OPERATIONS INC, 1415 W DIEHL ROAD, NAPERVILLE IL 60563
Cristina Camahort Tate officer: Interim CFO C/O EXTREME NETWORKS, INC., 2121 RDU CENTER DRIVE SUITE 300, MORRISVILLE NC 27560
Remi Thomas officer: EVP Chief Financial Officer 6480 VIA DEL ORO, SAN JOSE CA 95119
Ingrid Burton director 1011 MCCARTHY BOULEVARD --, MILPITAS CA 95035
Kathleen M Holmgren director C/O EXTREME NETWORKS, INC, 145 RIO ROBLES, SAN JOSE CA 95134
Charles Carinalli director
John C Shoemaker director 1143 BORREGAS AVENUE, SUNNYVALE CA 94089
Robert J Gault officer: EVP Global Sales, Channel, Svc C/O EXTREME NETWORKS, INC, 145 RIO ROBLES, SAN JOSE CA 95134
Matthew Howard Cleaver officer: Interim CFO 6480 VIA DEL ORO, SAN JOSE CA 95119
Maryam Alexandrian-adams director 516 WELLS COURT, SAN RAMON CA 94582
John H Kispert director