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Arkema (XPAR:AKE) Cyclically Adjusted FCF per Share : €6.34 (As of Mar. 2024)


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What is Arkema 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.

Arkema's adjusted free cash flow per share for the three months ended in Mar. 2024 was €-1.133. 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 €6.34 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Arkema's average Cyclically Adjusted FCF Growth Rate was 12.60% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 15.80% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 13.60% 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 Arkema was 17.20% per year. The lowest was 8.80% per year. And the median was 9.80% per year.

As of today (2024-05-21), Arkema's current stock price is €97.35. Arkema's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €6.34. Arkema's Cyclically Adjusted Price-to-FCF of today is 15.35.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Arkema was 38.75. The lowest was 13.83. And the median was 26.29.


Arkema Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Arkema'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.

Arkema Cyclically Adjusted FCF per Share Chart

Arkema 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 3.72 4.02 4.13 5.39 6.25

Arkema 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 5.63 6.07 6.02 6.25 6.34

Competitive Comparison of Arkema's Cyclically Adjusted FCF per Share

For the Specialty Chemicals subindustry, Arkema'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.


Arkema's Cyclically Adjusted Price-to-FCF Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Arkema's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Arkema 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, Arkema'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)
=-1.133/119.4700*119.4700
=-1.133

Current CPI (Mar. 2024) = 119.4700.

Arkema Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.015 100.180 -0.018
201409 0.780 99.920 0.933
201412 0.737 99.860 0.882
201503 -0.841 100.170 -1.003
201506 1.218 100.440 1.449
201509 1.893 99.950 2.263
201512 2.640 100.040 3.153
201603 -0.524 100.020 -0.626
201606 1.058 100.630 1.256
201609 2.336 100.340 2.781
201612 1.577 100.650 1.872
201703 -0.461 101.170 -0.544
201706 1.871 101.320 2.206
201709 3.323 101.330 3.918
201712 2.509 101.850 2.943
201803 -0.289 102.750 -0.336
201806 0.932 103.370 1.077
201809 2.974 103.560 3.431
201812 2.102 103.470 2.427
201903 0.862 103.890 0.991
201906 1.162 104.580 1.327
201909 2.778 104.500 3.176
201912 2.829 104.980 3.219
202003 0.143 104.590 0.163
202006 1.761 104.790 2.008
202009 2.916 104.550 3.332
202012 1.317 104.960 1.499
202103 -0.274 105.750 -0.310
202106 1.733 106.340 1.947
202109 0.256 106.810 0.286
202112 0.280 107.850 0.310
202203 -0.552 110.490 -0.597
202206 4.510 112.550 4.787
202209 3.281 112.740 3.477
202212 2.879 114.160 3.013
202303 -0.706 116.790 -0.722
202306 3.278 117.650 3.329
202309 1.442 118.260 1.457
202312 3.731 118.390 3.765
202403 -1.133 119.470 -1.133

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


Arkema  (XPAR:AKE) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=97.35/6.34
=15.35

* 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 Arkema was 38.75. The lowest was 13.83. And the median was 26.29.


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.


Arkema Cyclically Adjusted FCF per Share Related Terms

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


Arkema (XPAR:AKE) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Arkema SA (XPAR:AKE) » Definitions » Cyclically Adjusted FCF per Share
Address
420 rue d’Estienne d’Orves, Colombes, FRA, 92700
Arkema is a French chemical company formerly known for its large presence in the global acrylics market. However, the company has now developed a strong portfolio of speciality materials. Arkema is organised into four segments. Adhesive solutions, advanced materials, and coatings solutions contain the more specialized material businesses. The intermediates segment houses the remaining commodity chemical businesses. Geographically, sales are split fairly equally between Europe, the U.S., and Asia.

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