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Ferguson Enterprises (CHIX:FERGL) Cyclically Adjusted FCF per Share : £5.66 (As of Jul. 2024)


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What is Ferguson Enterprises 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.

Ferguson Enterprises's adjusted free cash flow per share for the three months ended in Jul. 2024 was £0.987. 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 £5.66 for the trailing ten years ended in Jul. 2024.

During the past 12 months, Ferguson Enterprises's average Cyclically Adjusted FCF Growth Rate was 3.60% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 12.10% 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 Ferguson Enterprises was 12.10% per year. The lowest was 12.10% per year. And the median was 12.10% per year.

As of today (2024-09-21), Ferguson Enterprises's current stock price is £151.90. Ferguson Enterprises's Cyclically Adjusted FCF per Share for the quarter that ended in Jul. 2024 was £5.66. Ferguson Enterprises's Cyclically Adjusted Price-to-FCF of today is 26.84.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Ferguson Enterprises was 70.01. The lowest was 21.31. And the median was 27.35.


Ferguson Enterprises Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Ferguson Enterprises'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.

Ferguson Enterprises Cyclically Adjusted FCF per Share Chart

Ferguson Enterprises Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 3.72 3.96 5.44 5.66

Ferguson Enterprises Quarterly Data
Jan19 Jul19 Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 5.44 5.95 5.56 6.02 5.66

Competitive Comparison of Ferguson Enterprises's Cyclically Adjusted FCF per Share

For the Industrial Distribution subindustry, Ferguson Enterprises'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.


Ferguson Enterprises's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Jul. 2024 (Change)*Current CPI (Jul. 2024)
=0.987/132.7078*132.7078
=0.987

Current CPI (Jul. 2024) = 132.7078.

Ferguson Enterprises Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
200901 0.000 89.084 0.000
200907 0.000 90.859 0.000
201001 0.000 91.423 0.000
201007 0.000 91.981 0.000
201101 0.000 92.914 0.000
201107 0.000 95.319 0.000
201201 0.000 95.632 0.000
201207 0.000 96.661 0.000
201301 0.000 97.158 0.000
201307 0.000 98.557 0.000
201401 0.000 98.692 0.000
201407 0.000 100.520 0.000
201501 0.000 98.604 0.000
201507 0.000 100.691 0.000
201601 0.000 99.957 0.000
201607 0.000 101.524 0.000
201701 0.000 102.456 0.000
201707 0.000 103.278 0.000
201801 0.000 104.578 0.000
201807 0.000 106.324 0.000
201901 0.000 106.200 0.000
201907 0.000 108.250 0.000
202001 0.000 108.841 0.000
202007 0.000 109.318 0.000
202010 0.457 109.861 0.552
202101 0.241 110.364 0.290
202104 1.301 112.673 1.532
202107 1.709 115.183 1.969
202110 -0.207 116.696 -0.235
202201 0.567 118.619 0.634
202204 1.344 121.978 1.462
202207 1.455 125.002 1.545
202210 1.694 125.734 1.788
202301 2.068 126.223 2.174
202304 1.995 127.992 2.069
202307 3.182 128.974 3.274
202310 1.870 129.810 1.912
202401 0.791 130.124 0.807
202404 2.253 132.289 2.260
202407 0.987 132.708 0.987

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


Ferguson Enterprises  (CHIX:FERGl) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=151.90/5.66
=26.84

* 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 Ferguson Enterprises was 70.01. The lowest was 21.31. And the median was 27.35.


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.


Ferguson Enterprises Cyclically Adjusted FCF per Share Related Terms

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


Ferguson Enterprises Business Description

Traded in Other Exchanges
Address
1020 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, GBR, RG41 5TS
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.

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