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Visa (UKEX:V) Cyclically Adjusted FCF per Share : ₴117.68 (As of Mar. 2024)


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What is Visa 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.

Visa's adjusted free cash flow per share for the three months ended in Mar. 2024 was ₴84.176. 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 ₴117.68 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Visa's average Cyclically Adjusted FCF Growth Rate was 14.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 22.60% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 21.00% 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 Visa was 29.70% per year. The lowest was 20.00% per year. And the median was 23.30% per year.

As of today (2024-05-27), Visa's current stock price is ₴5393.00. Visa's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was ₴117.68. Visa's Cyclically Adjusted Price-to-FCF of today is 45.83.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Visa was 72.51. The lowest was 37.09. And the median was 63.60.


Visa Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Visa'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.

Visa Cyclically Adjusted FCF per Share Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 109.38 145.41 135.99

Visa 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 127.02 125.58 135.99 121.59 117.68

Competitive Comparison of Visa's Cyclically Adjusted FCF per Share

For the Credit Services subindustry, Visa'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.


Visa's Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Visa 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, Visa'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)
=84.176/131.7762*131.7762
=84.176

Current CPI (Mar. 2024) = 131.7762.

Visa Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 29.432 100.560 38.569
201409 25.326 100.428 33.231
201412 26.960 99.070 35.860
201503 14.423 99.621 19.078
201506 33.549 100.684 43.909
201509 26.351 100.392 34.589
201512 30.745 99.792 40.599
201603 12.023 100.470 15.769
201606 2.890 101.688 3.745
201609 38.218 101.861 49.442
201612 38.919 101.863 50.348
201703 4.189 102.862 5.367
201706 56.496 103.349 72.036
201709 45.648 104.136 57.764
201712 45.784 104.011 58.006
201803 46.633 105.290 58.364
201806 61.963 106.317 76.801
201809 57.390 106.507 71.006
201812 55.207 105.998 68.633
201903 33.755 107.251 41.474
201906 56.784 108.070 69.240
201909 67.847 108.329 82.532
201912 66.309 108.420 80.593
202003 20.305 108.902 24.570
202006 51.736 108.767 62.680
202009 35.158 109.815 42.189
202012 61.449 109.897 73.683
202103 58.299 111.754 68.744
202106 78.181 114.631 89.874
202109 69.723 115.734 79.387
202112 75.800 117.630 84.916
202203 60.647 121.301 65.884
202206 95.010 125.017 100.147
202209 106.391 125.227 111.956
202212 75.228 125.222 79.166
202303 70.311 127.348 72.756
202306 106.650 128.729 109.175
202309 129.355 129.860 131.264
202312 65.988 129.419 67.190
202403 84.176 131.776 84.176

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


Visa  (UKEX:V) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=5393.00/117.68
=45.83

* 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 Visa was 72.51. The lowest was 37.09. And the median was 63.60.


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.


Visa Cyclically Adjusted FCF per Share Related Terms

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


Visa (UKEX:V) Business Description

Industry
Address
P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.