The Descartes Systems Group (STU:DC2) Cyclically Adjusted FCF per Share : €1.37 (As of Apr. 2024)

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What is The Descartes Systems 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.

The Descartes Systems Group's adjusted free cash flow per share for the three months ended in Apr. 2024 was €0.663. 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 €1.37 for the trailing ten years ended in Apr. 2024.

During the past 12 months, The Descartes Systems Group's average Cyclically Adjusted FCF Growth Rate was 17.40% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 21.90% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 21.70% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 21.10% 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 The Descartes Systems Group was 95.70% per year. The lowest was 16.30% per year. And the median was 21.90% per year.

As of today (2024-06-20), The Descartes Systems Group's current stock price is €87.40. The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 was €1.37. The Descartes Systems Group's Cyclically Adjusted Price-to-FCF of today is 63.80.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of The Descartes Systems Group was 110.09. The lowest was 41.54. And the median was 59.87.

The Descartes Systems Group Cyclically Adjusted FCF per Share Historical Data

The historical data trend for The Descartes Systems 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.

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The Descartes Systems Group Cyclically Adjusted FCF per Share Chart

The Descartes Systems Group Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Cyclically Adjusted FCF per Share

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0.60

0.68

0.89

1.11

1.32

The Descartes Systems Group Quarterly Data
	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24
Cyclically Adjusted FCF per Share	Get a 7-Day Free Trial															1.15	1.23	1.23	1.32	1.37

Competitive Comparison of The Descartes Systems Group's Cyclically Adjusted FCF per Share

For the Software - Application subindustry, The Descartes Systems 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.

The Descartes Systems Group's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, The Descartes Systems Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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

The Descartes Systems Group Cyclically Adjusted FCF per Share Calculation

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, The Descartes Systems Group's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2024 was:

Adj_FreeCashFlowPerShare	=	Free Cash Flow per Share	/	CPI of Apr. 2024 (Change)	*	Current CPI (Apr. 2024)
	=	0.663	/	126.8896	*	126.8896
	=	0.663

Current CPI (Apr. 2024) = 126.8896.

The Descartes Systems Group Quarterly Data

	Free Cash Flow per Share	CPI	Adj_FreeCashFlowPerShare
201407	0.164	99.315	0.210
201410	0.117	99.473	0.149
201501	0.139	98.209	0.180
201504	0.132	99.710	0.168
201507	0.136	100.579	0.172
201510	0.142	100.500	0.179
201601	0.185	100.184	0.234
201604	0.168	101.370	0.210
201607	0.177	101.844	0.221
201610	0.231	102.002	0.287
201701	0.229	102.318	0.284
201704	0.191	103.029	0.235
201707	0.183	103.029	0.225
201710	0.184	103.424	0.226
201801	0.195	104.056	0.238
201804	0.188	105.320	0.227
201807	0.190	106.110	0.227
201810	0.202	105.952	0.242
201901	0.220	105.557	0.264
201904	0.251	107.453	0.296
201907	0.281	108.243	0.329
201910	0.276	107.927	0.324
202001	0.267	108.085	0.313
202004	0.285	107.216	0.337
202007	0.335	108.401	0.392
202010	0.320	108.638	0.374
202101	0.340	109.192	0.395
202104	0.381	110.851	0.436
202107	0.446	112.431	0.503
202110	0.420	113.695	0.469
202201	0.456	114.801	0.504
202204	0.459	118.357	0.492
202207	0.508	120.964	0.533
202210	0.586	121.517	0.612
202301	0.525	121.596	0.548
202304	0.501	123.571	0.514
202307	0.519	124.914	0.527
202310	0.596	125.310	0.604
202401	0.528	125.072	0.536
202404	0.663	126.890	0.663

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

The Descartes Systems Group (STU:DC2) 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.

The Descartes Systems Group's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF	=	Share Price	/	Cyclically Adjusted FCF per Share
	=	87.40	/	1.37
	=	63.80

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of The Descartes Systems Group was 110.09. The lowest was 41.54. And the median was 59.87.

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.

The Descartes Systems Group Cyclically Adjusted FCF per Share Related Terms

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

The Descartes Systems Group (STU:DC2) Business Description

Industry

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DSGX:USA DC2:Germany DSG:Canada

Address

120 Randall Drive, Waterloo, ON, CAN, N2V 1C6

Website

https://www.descartes.com

The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

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