GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Absa Group Ltd (OTCPK:AGRPY) » Definitions » Cyclically Adjusted Price-to-FCF

Absa Group (Absa Group) Cyclically Adjusted Price-to-FCF : (As of Apr. 29, 2024)


View and export this data going back to 1997. Start your Free Trial

What is Absa Group Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Absa Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Absa Group's Cyclically Adjusted Price-to-FCF 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.

Absa Group Cyclically Adjusted Price-to-FCF Chart

Absa Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.19 12.75 17.30 16.86 -

Absa Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Cyclically Adjusted Price-to-FCF 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 17.30 - 16.86 - -

Competitive Comparison of Absa Group's Cyclically Adjusted Price-to-FCF

For the Banks - Regional subindustry, Absa 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.


Absa Group's Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

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

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



Absa Group Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Absa Group's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Absa Group's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=4.701/152.7175*152.7175
=4.701

Current CPI (Dec23) = 152.7175.

Absa Group Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 3.031 96.794 4.782
201512 1.860 101.808 2.790
201612 0.231 109.002 0.324
201712 -1.178 113.907 -1.579
201812 1.071 118.921 1.375
201912 1.082 123.717 1.336
202012 0.338 127.467 0.405
202112 0.310 135.029 0.351
202212 2.377 145.156 2.501
202312 4.701 152.718 4.701

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


Absa Group  (OTCPK:AGRPY) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Absa Group Cyclically Adjusted Price-to-FCF Related Terms

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


Absa Group (Absa Group) Business Description

Industry
Traded in Other Exchanges
Address
15 Troye Street, 7th Floor, Absa Towers West, PO Box 7735, Johannesburg, GT, ZAF, 2000
Absa Group Ltd is a financial services company that has five main business segments: Product Solutions Cluster, Everyday Banking, Relationship Banking, Absa Regional Operations RBB (ARO RBB), CIB, & Head Office, Treasury, and other operations. The majority is from the Corporate and Investment Bank (CIB) segment which includes prioritized new-to-bank clients across key growth and priority sectors. CIB continued to up-sell and cross-sell new products and services to existing clients. Geographically, the majority is from South Africa.

Absa Group (Absa Group) Headlines

From GuruFocus