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Taro Pharmaceutical Industries (Taro Pharmaceutical Industries) Cyclically Adjusted Price-to-FCF : 7.32 (As of Apr. 28, 2024)


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What is Taro Pharmaceutical Industries Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Taro Pharmaceutical Industries's current share price is $42.40. Taro Pharmaceutical Industries's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $5.79. Taro Pharmaceutical Industries's Cyclically Adjusted Price-to-FCF for today is 7.32.

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

TARO' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 3.84   Med: 15.2   Max: 37.12
Current: 7.32

During the past years, Taro Pharmaceutical Industries's highest Cyclically Adjusted Price-to-FCF was 37.12. The lowest was 3.84. And the median was 15.20.

TARO's Cyclically Adjusted Price-to-FCF is ranked better than
92.31% of 325 companies
in the Drug Manufacturers industry
Industry Median: 32.81 vs TARO: 7.32

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.

Taro Pharmaceutical Industries's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $-0.095. 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 $5.79 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Taro Pharmaceutical Industries Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Taro Pharmaceutical Industries'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.

Taro Pharmaceutical Industries Cyclically Adjusted Price-to-FCF Chart

Taro Pharmaceutical Industries Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.54 8.34 9.94 6.49 3.84

Taro Pharmaceutical Industries 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 4.60 3.84 6.09 6.16 7.21

Competitive Comparison of Taro Pharmaceutical Industries's Cyclically Adjusted Price-to-FCF

For the Drug Manufacturers - Specialty & Generic subindustry, Taro Pharmaceutical Industries'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.


Taro Pharmaceutical Industries's Cyclically Adjusted Price-to-FCF Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Taro Pharmaceutical Industries's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Taro Pharmaceutical Industries 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.

Taro Pharmaceutical Industries's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=42.40/5.79
=7.32

* 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.

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

For example, Taro Pharmaceutical Industries'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)
=-0.095/129.4194*129.4194
=-0.095

Current CPI (Dec. 2023) = 129.4194.

Taro Pharmaceutical Industries Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.847 99.695 2.398
201406 0.695 100.560 0.894
201409 1.305 100.428 1.682
201412 2.176 99.070 2.843
201503 4.851 99.621 6.302
201506 1.538 100.684 1.977
201509 1.322 100.392 1.704
201512 2.428 99.792 3.149
201603 3.492 100.470 4.498
201606 1.104 101.688 1.405
201609 3.067 101.861 3.897
201612 2.946 101.863 3.743
201703 2.652 102.862 3.337
201706 1.631 103.349 2.042
201709 1.470 104.136 1.827
201712 2.024 104.011 2.518
201803 2.207 105.290 2.713
201806 1.944 106.317 2.366
201809 1.736 106.507 2.109
201812 2.531 105.998 3.090
201903 1.299 107.251 1.568
201906 1.936 108.070 2.318
201909 0.911 108.329 1.088
201912 2.388 108.420 2.851
202003 1.086 108.902 1.291
202006 1.540 108.767 1.832
202009 -3.034 109.815 -3.576
202012 0.982 109.897 1.156
202103 1.267 111.754 1.467
202106 1.060 114.631 1.197
202109 -1.437 115.734 -1.607
202112 -5.195 117.630 -5.716
202203 -1.618 121.301 -1.726
202206 -1.600 125.017 -1.656
202209 0.504 125.227 0.521
202212 0.132 125.222 0.136
202303 1.280 127.348 1.301
202306 0.025 128.729 0.025
202309 1.078 129.860 1.074
202312 -0.095 129.419 -0.095

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.


Taro Pharmaceutical Industries  (NYSE:TARO) 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.


Taro Pharmaceutical Industries Cyclically Adjusted Price-to-FCF Related Terms

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


Taro Pharmaceutical Industries (Taro Pharmaceutical Industries) Business Description

Traded in Other Exchanges
Address
14 Hakitor Street, P.O. Box 10347, Haifa Bay, Haifa, ISR, 2624761
Taro Pharmaceutical Industries Ltd produces, researches, develops, and markets pharmaceutical products. Its primary focus includes semi-solid formulations, such as creams and ointments, and other dosage forms such as liquids, capsules, and tablets. The company is engaged in the dermatological and topical, cardiovascular, neuropsychiatric, and anti-inflammatory therapeutic categories. Geographically, it derives a majority of its revenue from the United States and also has a presence in Canada, Israel, and Other Countries.
Executives
Sun Pharma Global Inc 10 percent owner
Sun Pharmaceutical Industries Ltd 10 percent owner, other: Affiliated Party 17/B, MAHAL INDUSTRIAL ESTATE, MAHAKALI CAVES ROAD, ANDEHERI (EAST) K7 400 093
Alkaloida Chemical Co Exclusive Group Ltd. 10 percent owner KABAY JANOS UT 29., TISZAVASVARI K5 4440
Franklin Resources Inc 10 percent owner FRANKLIN RESOURCES INC, ONE FRANKLIN PARKWAY, SAN MATEO CA 94403

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