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IR (Ingersoll Rand) Cyclically Adjusted FCF per Share : $1.59 (As of Sep. 2024)


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What is Ingersoll Rand 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.

Ingersoll Rand's adjusted free cash flow per share data for the fiscal year that ended in Dec. 2023 was $3.110. 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 $1.59 for the trailing ten years ended in Dec. 2023.

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.

As of today (2024-12-13), Ingersoll Rand's current stock price is $ 101.42. Ingersoll Rand's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec. 2023 was $1.59. Ingersoll Rand's Cyclically Adjusted Price-to-FCF of today is 63.79.

During the past 10 years, the highest Cyclically Adjusted Price-to-FCF of Ingersoll Rand was 63.86. The lowest was 47.04. And the median was 56.27.


Ingersoll Rand Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Ingersoll Rand'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.

Ingersoll Rand Cyclically Adjusted FCF per Share Chart

Ingersoll Rand 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 - - - - 1.59

Ingersoll Rand 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 - 1.59 - - -

Competitive Comparison of Ingersoll Rand's Cyclically Adjusted FCF per Share

For the Specialty Industrial Machinery subindustry, Ingersoll Rand'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.


Ingersoll Rand's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ingersoll Rand's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Ingersoll Rand 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, Ingersoll Rand's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=3.11/129.4194*129.4194
=3.110

Current CPI (Dec. 2023) = 129.4194.

Ingersoll Rand Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 0.360 99.070 0.470
201512 0.533 99.792 0.691
201612 0.481 101.863 0.611
201712 0.763 104.011 0.949
201812 1.876 105.998 2.291
201912 1.462 108.420 1.745
202012 2.279 109.897 2.684
202112 1.309 117.630 1.440
202212 1.867 125.222 1.930
202312 3.110 129.419 3.110

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


Ingersoll Rand  (NYSE:IR) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=101.42/1.59
=63.79

* 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 10 years, the highest Cyclically Adjusted Price-to-FCF of Ingersoll Rand was 63.86. The lowest was 47.04. And the median was 56.27.


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.


Ingersoll Rand Cyclically Adjusted FCF per Share Related Terms

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


Ingersoll Rand Business Description

Industry
Traded in Other Exchanges
Address
525 Harbour Place Drive, Suite 600, Davidson, NC, USA, 28036
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment. The firm's portfolio consists of two business lines: industrial technologies and services, and precision and science technologies. Ingersoll Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, and fluid management. Ingersoll Rand generated roughly $6.9 billion in revenue in 2023.
Executives
Michael J Scheske officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Andrew R Schiesl officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Kathleen M. Keene officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Elizabeth Meloy Hepding officer: See Remarks C/O INGERSOLL RAND INC., 800-A BEATY STREET, DAVIDSON NC 28036
Vicente Reynal director, officer: Chief Executive Officer C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Joanna Sohovich director 123 MAIN STREET, BRISTOL CT 06010
Julie Schertell director 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Santiago Arias Duval officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Vikram Kini officer: Senior Vice President and CFO C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Matthew J Emmerich officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Gary E Gillespie officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Jennifer Hartsock director C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Viseras Enrique Minarro officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Nicholas J Kendall-jones officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Michael Stubblefield director C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087