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Eaton (MEX:ETN1) Cyclically Adjusted FCF per Share : MXN122.13 (As of Sep. 2024)


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What is Eaton 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.

Eaton's adjusted free cash flow per share for the three months ended in Sep. 2024 was MXN55.581. 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 MXN122.13 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Eaton's average Cyclically Adjusted FCF Growth Rate was 9.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 10.40% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 9.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 7.20% 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 Eaton was 22.50% per year. The lowest was -4.90% per year. And the median was 7.90% per year.

As of today (2024-12-13), Eaton's current stock price is MXN7336.22. Eaton's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2024 was MXN122.13. Eaton's Cyclically Adjusted Price-to-FCF of today is 60.07.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Eaton was 60.87. The lowest was 15.44. And the median was 23.88.


Eaton Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Eaton'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.

Eaton Cyclically Adjusted FCF per Share Chart

Eaton 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 74.02 84.70 96.37 101.73 93.13

Eaton 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 97.46 93.13 98.81 110.54 122.13

Competitive Comparison of Eaton's Cyclically Adjusted FCF per Share

For the Specialty Industrial Machinery subindustry, Eaton'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.


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

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

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



Eaton 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, Eaton'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)
=55.581/121.5939*121.5939
=55.581

Current CPI (Sep. 2024) = 121.5939.

Eaton Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 21.535 99.576 26.297
201503 -0.908 99.975 -1.104
201506 14.647 100.573 17.708
201509 30.832 100.274 37.387
201512 23.848 99.676 29.092
201603 10.370 99.676 12.650
201606 24.615 101.072 29.613
201609 29.665 100.274 35.972
201612 22.199 99.676 27.080
201703 14.487 100.374 17.550
201706 17.891 100.673 21.609
201709 26.293 100.474 31.820
201712 31.469 100.075 38.236
201803 8.555 100.573 10.343
201806 15.727 101.072 18.920
201809 37.256 101.371 44.689
201812 30.243 100.773 36.492
201903 18.309 101.670 21.897
201906 33.188 102.168 39.498
201909 44.353 102.268 52.735
201912 35.887 102.068 42.752
202003 12.035 102.367 14.295
202006 38.365 101.769 45.839
202009 45.687 101.072 54.964
202012 41.886 101.072 50.391
202103 7.189 102.367 8.539
202106 24.002 103.364 28.235
202109 16.935 104.859 19.638
202112 32.235 106.653 36.751
202203 -3.617 109.245 -4.026
202206 10.092 112.779 10.881
202209 41.707 113.504 44.680
202212 47.560 115.436 50.097
202303 9.406 117.609 9.725
202306 29.522 119.662 29.999
202309 39.600 120.749 39.877
202312 44.580 120.749 44.892
202403 12.058 120.990 12.118
202406 34.676 122.318 34.471
202409 55.581 121.594 55.581

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


Eaton  (MEX:ETN1) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=7336.22/122.13
=60.07

* 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 Eaton was 60.87. The lowest was 15.44. And the median was 23.88.


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.


Eaton Cyclically Adjusted FCF per Share Related Terms

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


Eaton Business Description

Industry
Address
30 Pembroke Road, Eaton House, Dublin, IRL, D04 Y0C2
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.

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