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Valmet (LTS:0QIW) Cyclically Adjusted FCF per Share : €1.62 (As of Mar. 2024)


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What is Valmet 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.

Valmet's adjusted free cash flow per share for the three months ended in Mar. 2024 was €0.592. 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 €1.62 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Valmet's average Cyclically Adjusted FCF Growth Rate was 10.30% 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.

As of today (2024-06-06), Valmet's current stock price is €24.16. Valmet's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €1.62. Valmet's Cyclically Adjusted Price-to-FCF of today is 14.91.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Valmet was 27.03. The lowest was 13.86. And the median was 18.44.


Valmet Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Valmet'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.

Valmet Cyclically Adjusted FCF per Share Chart

Valmet 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 - - 1.39 1.33 1.57

Valmet Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.46 1.44 1.48 1.57 1.62

Competitive Comparison of Valmet's Cyclically Adjusted FCF per Share

For the Specialty Industrial Machinery subindustry, Valmet'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.


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

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

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



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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.592/122.3600*122.3600
=0.592

Current CPI (Mar. 2024) = 122.3600.

Valmet Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.229 100.147 0.280
201409 0.736 100.726 0.894
201412 0.093 100.229 0.114
201503 -0.200 100.120 -0.244
201506 0.053 100.030 0.065
201509 0.033 100.130 0.040
201512 0.334 99.990 0.409
201603 -0.053 100.080 -0.065
201606 0.100 100.390 0.122
201609 0.706 100.540 0.859
201612 0.484 101.020 0.586
201703 0.534 100.910 0.648
201706 0.107 101.140 0.129
201709 0.413 101.320 0.499
201712 0.460 101.510 0.554
201803 0.020 101.730 0.024
201806 -0.112 102.320 -0.134
201809 0.644 102.600 0.768
201812 0.809 102.710 0.964
201903 0.080 102.870 0.095
201906 -0.431 103.360 -0.510
201909 0.713 103.540 0.843
201912 1.069 103.650 1.262
202003 1.043 103.490 1.233
202006 0.817 103.320 0.968
202009 0.487 103.710 0.575
202012 0.602 103.890 0.709
202103 0.830 104.870 0.968
202106 1.055 105.360 1.225
202109 0.233 106.290 0.268
202112 0.462 107.490 0.526
202203 -0.033 110.950 -0.036
202206 -0.610 113.570 -0.657
202209 0.460 114.920 0.490
202212 -0.244 117.320 -0.254
202303 0.994 119.750 1.016
202306 -0.404 120.690 -0.410
202309 0.164 121.280 0.165
202312 0.472 121.540 0.475
202403 0.592 122.360 0.592

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


Valmet  (LTS:0QIW) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=24.16/1.62
=14.91

* 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 Valmet was 27.03. The lowest was 13.86. And the median was 18.44.


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.


Valmet Cyclically Adjusted FCF per Share Related Terms

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


Valmet (LTS:0QIW) Business Description

Industry
Traded in Other Exchanges
Address
Keilasatama 5, P.O. Box 11, Espoo, FIN, 02150
Valmet Corp is a Finland-based company that supplies technologies, automation solutions, and other services to customers in the pulp, paper, and energy industries. The company has three segments: Services, Automation and Process Technologies. It generates maximum revenue from the Process Technologies segment. The Process Technologies segment provides technology solutions for pulp and energy production, as well as for biomass conversion and emission control. Geographically, it derives a majority of revenue from EMEA followed by North America.

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