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Alphabet (FRA:ABEC) Cyclically Adjusted FCF per Share : €3.14 (As of Sep. 2024)


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What is Alphabet 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.

Alphabet's adjusted free cash flow per share for the three months ended in Sep. 2024 was €1.280. 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 €3.14 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Alphabet's average Cyclically Adjusted FCF Growth Rate was -100.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 24.30% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 22.40% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 19.00% 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 Alphabet was 24.40% per year. The lowest was 14.90% per year. And the median was 19.50% per year.

As of today (2024-10-31), Alphabet's current stock price is €164.92. Alphabet's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2024 was €3.14. Alphabet's Cyclically Adjusted Price-to-FCF of today is 52.52.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Alphabet was 77.01. The lowest was 33.59. And the median was 48.89.


Alphabet Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Alphabet'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.

Alphabet Cyclically Adjusted FCF per Share Chart

Alphabet Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.22 1.33 1.91 2.42 2.84

Alphabet Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.95 2.84 3.05 3.19 3.14

Competitive Comparison of Alphabet's Cyclically Adjusted FCF per Share

For the Internet Content & Information subindustry, Alphabet'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.


Alphabet's Cyclically Adjusted Price-to-FCF Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Alphabet's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=1.28/133.0289*133.0289
=1.280

Current CPI (Sep. 2024) = 133.0289.

Alphabet Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 0.201 99.070 0.270
201503 0.254 99.621 0.339
201506 0.295 100.684 0.390
201509 0.240 100.392 0.318
201512 0.297 99.792 0.396
201603 0.335 100.470 0.444
201606 0.446 101.688 0.583
201609 0.465 101.861 0.607
201612 0.429 101.863 0.560
201703 0.469 102.862 0.607
201706 0.289 103.349 0.372
201709 0.378 104.136 0.483
201712 0.357 104.011 0.457
201803 0.250 105.290 0.316
201806 0.283 106.317 0.354
201809 0.483 106.507 0.603
201812 0.370 105.998 0.464
201903 0.465 107.251 0.577
201906 0.411 108.070 0.506
201909 0.568 108.329 0.698
201912 0.542 108.420 0.665
202003 0.356 108.902 0.435
202006 0.556 108.767 0.680
202009 0.718 109.815 0.870
202012 1.035 109.897 1.253
202103 0.822 111.754 0.978
202106 1.001 114.631 1.162
202109 1.176 115.734 1.352
202112 1.221 117.630 1.381
202203 1.042 121.301 1.143
202206 0.840 125.017 0.894
202209 1.237 125.227 1.314
202212 1.171 125.222 1.244
202303 1.173 127.348 1.225
202306 1.575 128.729 1.628
202309 1.667 129.860 1.708
202312 0.575 129.419 0.591
202403 1.236 131.776 1.248
202406 1.000 132.554 1.004
202409 1.280 133.029 1.280

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


Alphabet  (FRA:ABEC) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=164.92/3.14
=52.52

* 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 Alphabet was 77.01. The lowest was 33.59. And the median was 48.89.


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.


Alphabet Cyclically Adjusted FCF per Share Related Terms

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


Alphabet Business Description

Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

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