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Adobe (ADBE) Cyclically Adjusted FCF per Share : $10.10 (As of Feb. 2024)


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What is Adobe 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.

Adobe's adjusted free cash flow per share for the three months ended in Feb. 2024 was $2.493. 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 $10.10 for the trailing ten years ended in Feb. 2024.

During the past 12 months, Adobe's average Cyclically Adjusted FCF Growth Rate was 16.90% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 24.90% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 24.20% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 17.90% 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 Adobe was 26.20% per year. The lowest was 4.20% per year. And the median was 14.60% per year.

As of today (2024-05-27), Adobe's current stock price is $475.43. Adobe's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was $10.10. Adobe's Cyclically Adjusted Price-to-FCF of today is 47.07.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Adobe was 115.28. The lowest was 21.00. And the median was 54.36.


Adobe Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Adobe'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.

Adobe Cyclically Adjusted FCF per Share Chart

Adobe Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.11 5.04 6.53 8.27 9.81

Adobe Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 8.64 9.11 9.54 9.81 10.10

Competitive Comparison of Adobe's Cyclically Adjusted FCF per Share

For the Software - Infrastructure subindustry, Adobe'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.


Adobe's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

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

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



Adobe 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, Adobe's adjusted Free Cash Flow per Share data for the three months ended in Feb. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=2.493/130.9299*130.9299
=2.493

Current CPI (Feb. 2024) = 130.9299.

Adobe Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 0.672 100.373 0.877
201408 0.421 100.352 0.549
201411 0.714 99.635 0.938
201502 0.291 99.032 0.385
201505 0.862 100.333 1.125
201508 0.616 100.548 0.802
201511 0.768 100.135 1.004
201602 0.893 100.040 1.169
201605 0.862 101.355 1.114
201608 0.919 101.617 1.184
201611 1.289 101.829 1.657
201702 1.397 102.779 1.780
201705 1.178 103.256 1.494
201708 1.299 103.587 1.642
201711 1.587 104.072 1.997
201802 1.791 105.052 2.232
201805 1.869 106.148 2.305
201808 1.795 106.383 2.209
201811 2.105 106.338 2.592
201902 1.919 106.649 2.356
201905 1.959 108.048 2.374
201908 1.697 108.245 2.053
201911 2.614 108.519 3.154
202002 2.523 109.139 3.027
202005 2.243 108.175 2.715
202008 2.701 109.662 3.225
202011 3.483 109.793 4.154
202102 3.547 110.968 4.185
202105 3.936 113.576 4.537
202108 2.721 115.421 3.087
202111 4.089 117.269 4.565
202202 3.514 119.703 3.844
202205 4.047 123.323 4.297
202208 3.367 124.958 3.528
202211 4.784 125.607 4.987
202302 3.461 126.928 3.570
202305 4.397 128.314 4.487
202308 3.882 129.538 3.924
202311 3.377 129.548 3.413
202402 2.493 130.930 2.493

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


Adobe  (NAS:ADBE) 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.

Adobe's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=475.43/10.1
=47.07

* 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 Adobe was 115.28. The lowest was 21.00. And the median was 54.36.


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.


Adobe Cyclically Adjusted FCF per Share Related Terms

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


Adobe (ADBE) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Adobe Inc (NAS:ADBE) » Definitions » Cyclically Adjusted FCF per Share
Address
345 Park Avenue, San Jose, CA, USA, 95110-2704
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Executives
Mark S. Garfield officer: VP, CAO & Corp. Controller 345 PARK AVENUE, SAN JOSE CA 95110-2704
Amy Banse director 345 PARK AVENUE, SAN JOSE CA 95110
David Wadhwani officer: SVP & GM, Digital Media ADOBE INC., 345 PARK AVE, SAN JOSE CA 95110
Shantanu Narayen director, officer: President and CEO 345 PARK AVENUE, SAN JOSE CA 95110
Daniel Durn officer: EVP and CFO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Scott Belsky officer: EVP, Chief Product Officer 345 PARK AVENUE, SAN JOSE CA 95110
Cristiano R Amon director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
John E Warnock director, other: Co-Chairman of the Board C/O ADOBE SYSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704
Dana Rao officer: EVP, Gen. Counsel & Secretary 345 PARK AVE, SAN JOSE CA 95110
Ann Lewnes officer: SVP, Chief Marketing Officer 345 PARK AVENUE, SAN JOSE CA 95110
David A Ricks director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Laura Desmond director 345 PARK AVENUE, SAN JOSE CA 95110
Spencer Adam Neumann director SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gloria Chen officer: EVP, Strategy & Growth 345 PARK AVENUE, SAN JOSE CA 95110