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GuruFocus has detected 1 Warning Sign with Express Scripts Holding Co $ESRX.
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Express Scripts Holding Co (NAS:ESRX)
Price-to-Free-Cash-Flow
9.87 (As of Today)

As of today, Express Scripts Holding Co's share price is $71.55. Express Scripts Holding Co's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $7.25. Hence, Express Scripts Holding Co's Price-to-Free-Cash-Flow Ratio for today is 9.87.

ESRX' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 8.32   Max: 25.83
Current: 9.87

8.32
25.83

During the past 13 years, Express Scripts Holding Co's highest Price-to-Free-Cash-Flow Ratio was 25.83. The lowest was 8.32. And the median was 14.42.

ESRX's Price-to-Free-Cash-Flow is ranked higher than
69% of the 16 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.97 vs. ESRX: 9.87 )

Express Scripts Holding Co's Free Cash Flow per Share for the three months ended in Dec. 2016 was $3.42. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $7.25.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Express Scripts Holding Co was 11.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 11.30% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 9.30% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 20.40% per year.

During the past 13 years, Express Scripts Holding Co's highest 3-Year average Free Cash Flow per Share Growth Rate was 53.50% per year. The lowest was 1.90% per year. And the median was 26.20% per year.


Definition

Express Scripts Holding Co's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=71.55/7.25
=9.87

Express Scripts Holding Co's Share Price of today is $71.55.
Express Scripts Holding Co's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.029 (Mar. 2016 ) + 0.571 (Jun. 2016 ) + 2.235 (Sep. 2016 ) + 3.415 (Dec. 2016 ) = $7.25.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Express Scripts Holding Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
pfcf 25.6513.6414.0714.8610.958.4913.3415.6813.309.49

Express Scripts Holding Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
pfcf 13.8915.6816.4015.6512.8113.309.4311.449.049.49
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