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Radian Group (Radian Group) Cyclically Adjusted Price-to-FCF : 13.31 (As of Apr. 27, 2024)


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What is Radian Group Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Radian Group's current share price is $30.35. Radian Group's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $2.28. Radian Group's Cyclically Adjusted Price-to-FCF for today is 13.31.

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

RDN' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 12.04   Med: 23.4   Max: 120.6
Current: 13.29

During the past years, Radian Group's highest Cyclically Adjusted Price-to-FCF was 120.60. The lowest was 12.04. And the median was 23.40.

RDN's Cyclically Adjusted Price-to-FCF is ranked worse than
59.13% of 323 companies
in the Insurance industry
Industry Median: 11.04 vs RDN: 13.29

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.

Radian Group's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $1.666. 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 $2.28 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Radian Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Radian Group'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.

Radian Group Cyclically Adjusted Price-to-FCF Chart

Radian Group 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 - - 34.20 13.86 12.52

Radian Group 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 13.86 13.66 14.26 12.27 12.52

Competitive Comparison of Radian Group's Cyclically Adjusted Price-to-FCF

For the Insurance - Specialty subindustry, Radian Group'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.


Radian Group's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Radian Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Radian Group 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=30.35/2.28
=13.31

* 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.

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

For example, Radian Group'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)
=1.666/129.4194*129.4194
=1.666

Current CPI (Dec. 2023) = 129.4194.

Radian Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.628 99.695 -0.815
201406 -0.555 100.560 -0.714
201409 0.142 100.428 0.183
201412 0.285 99.070 0.372
201503 -0.015 99.621 -0.019
201506 -0.307 100.684 -0.395
201509 0.208 100.392 0.268
201512 0.054 99.792 0.070
201603 0.135 100.470 0.174
201606 0.450 101.688 0.573
201609 0.553 101.861 0.703
201612 0.387 101.863 0.492
201703 0.344 102.862 0.433
201706 0.543 103.349 0.680
201709 0.001 104.136 0.001
201712 0.628 104.011 0.781
201803 0.517 105.290 0.635
201806 0.802 106.317 0.976
201809 0.840 106.507 1.021
201812 0.827 105.998 1.010
201903 0.967 107.251 1.167
201906 0.523 108.070 0.626
201909 0.782 108.329 0.934
201912 0.863 108.420 1.030
202003 0.747 108.902 0.888
202006 0.744 108.767 0.885
202009 0.975 109.815 1.149
202012 0.808 109.897 0.952
202103 0.773 111.754 0.895
202106 0.616 114.631 0.695
202109 0.658 115.734 0.736
202112 0.822 117.630 0.904
202203 0.629 121.301 0.671
202206 0.324 125.017 0.335
202209 0.611 125.227 0.631
202212 0.622 125.222 0.643
202303 0.694 127.348 0.705
202306 0.418 128.729 0.420
202309 0.443 129.860 0.441
202312 1.666 129.419 1.666

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.


Radian Group  (NYSE:RDN) 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.


Radian Group Cyclically Adjusted Price-to-FCF Related Terms

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


Radian Group (Radian Group) Business Description

Industry
Traded in Other Exchanges
Address
550 East Swedesford Road, Suite 350, Wayne, PA, USA, 19087
Radian Group Inc provides mortgage insurance and services to the real estate and mortgage finance industries. Radian's mortgage insurance provides coverage to lending institutions throughout the United States. Its services include analytics and consulting for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities and other asset-backed securities. Insurance premiums account for more than three fourths of the company's revenue. Services revenue and investment income are the other principal sources of revenue. It operates in two segments: Mortgage and homegenius. The Mortgage segment earns the majority of revenue.
Executives
Gregory Serio director RADIAN GROUP INC., 1601 MARKET ST., PHILADELPHIA PA 19103
Lisa Hess director RADIAN GROUP, 1601 MARKET ST, PHILADELPHIA PA 19103
Margaret Anne Leyden director 550 E. SWEDESFORD RD.,, STE 350, WAYNE PA 19087
Edward J Hoffman officer: SVP, Secretary and General Cou 1601 MARKET STREET, PHILADELPHIA PA 19103
Lisa Mumford director 6 BEACHWOOD COURT, DIX HILLS NY 11746
Eric Ray officer: Sr, Executive Vice President C/O RADIAN, 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Noel Joseph Spiegel director RADIAN GROUP INC., 1601 MARKET STREET, PHILADELPHIA PA 19103
Howard Bernard Culang director 9 MARISSA COURT, ATLANTIC HIGHLANDS NJ 07716
Derek Brummer officer: Chief Risk Officer RADIAN GROUP INC., 1601 MARKET ST, PHILADELPHIA PA 19103
Sumita Pandit officer: Sr. EVP, Chief Growth Officer 550 EAST SWEDESFORD RD., #350, WAYNE PA 19087
Fawad Ahmad director C/) RADIAN GROUP INC., 550 E. SWEDESFORD RD., #350, WAYNE PA 19087
Brien Mcmahon officer: EVP & Chief Franchise Officer 1500 MARKET ST., WEST TOWER, #2050, PHILADELPHIA PA 19102
Richard G Thornberry director, officer: Chief Executive Officer RADIAN, 1601 MARKET ST, PHILADELPHIA PA 19103
Mary Dickerson officer: EVP Chief People Officer RADIAN GROUP INC., 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Brad L. Conner director CITIZENS FINANCIAL GROUP, 600 WASHINGTON BLVD., CS119N, STAMFORD CT 06901