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Rakuten Group (FRA:RAK) Cyclically Adjusted FCF per Share : €0.60 (As of Dec. 2024)


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What is Rakuten Group 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.

Rakuten Group's adjusted free cash flow per share for the three months ended in Dec. 2024 was €0.940. 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 €0.60 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Rakuten Group's average Cyclically Adjusted FCF Growth Rate was 69.50% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 4.50% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 13.00% 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 Rakuten Group was 78.00% per year. The lowest was -8.70% per year. And the median was 8.30% per year.

As of today (2025-03-03), Rakuten Group's current stock price is €6.03. Rakuten Group's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2024 was €0.60. Rakuten Group's Cyclically Adjusted Price-to-FCF of today is 10.05.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Rakuten Group was 222.74. The lowest was 8.68. And the median was 17.31.


Rakuten Group Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Rakuten Group'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.

Rakuten Group Cyclically Adjusted FCF per Share Chart

Rakuten Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.61 0.66 0.27 0.37 0.60

Rakuten Group Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 0.37 0.38 0.47 0.54 0.60

Competitive Comparison of Rakuten Group's Cyclically Adjusted FCF per Share

For the Internet Retail subindustry, Rakuten Group'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.


Rakuten Group's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rakuten Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.94/110.7000*110.7000
=0.940

Current CPI (Dec. 2024) = 110.7000.

Rakuten Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201503 -0.022 97.900 -0.025
201506 0.326 98.400 0.367
201509 -0.346 98.500 -0.389
201512 0.180 98.100 0.203
201603 0.301 97.900 0.340
201606 -0.609 98.100 -0.687
201609 0.419 98.000 0.473
201612 -0.249 98.400 -0.280
201703 -0.558 98.100 -0.630
201706 0.552 98.500 0.620
201709 0.145 98.800 0.162
201712 0.312 99.400 0.347
201803 -0.663 99.200 -0.740
201806 0.177 99.200 0.198
201809 0.492 99.900 0.545
201812 0.328 99.700 0.364
201903 -0.605 99.700 -0.672
201906 0.645 99.800 0.715
201909 -0.234 100.100 -0.259
201912 0.887 100.500 0.977
202003 0.327 100.300 0.361
202006 2.046 99.900 2.267
202009 1.123 99.900 1.244
202012 0.410 99.300 0.457
202103 -0.474 99.900 -0.525
202106 0.587 99.500 0.653
202109 0.417 100.100 0.461
202112 0.235 100.100 0.260
202203 -1.520 101.100 -1.664
202206 -0.692 101.800 -0.752
202209 -1.382 103.100 -1.484
202212 0.368 104.100 0.391
202303 -0.982 104.400 -1.041
202306 0.977 105.200 1.028
202309 -0.436 106.200 -0.454
202312 1.419 106.800 1.471
202403 0.176 107.200 0.182
202406 1.244 108.200 1.273
202409 0.315 108.900 0.320
202412 0.940 110.700 0.940

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


Rakuten Group  (FRA:RAK) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=6.03/0.60
=10.05

* 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 Rakuten Group was 222.74. The lowest was 8.68. And the median was 17.31.


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.


Rakuten Group Cyclically Adjusted FCF per Share Related Terms

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


Rakuten Group Business Description

Traded in Other Exchanges
Address
4-12-3 Higashishinagawa, Shinagawa Seaside Rakuten Tower, Shinagawa-ku, Tokyo, JPN, 140-0002
Rakuten is a leading e-commerce and fintech service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, Rakuten Securities, and became the fourth mobile network operator in Japan in April 2020. The loyalty program, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 80% of its revenue is generated from the Japanese market.

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