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Islami Bank Bangladesh (DHA:ISLAMIBANK) Cyclically Adjusted Price-to-FCF : 1.88 (As of May. 01, 2024)


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What is Islami Bank Bangladesh Cyclically Adjusted Price-to-FCF?

As of today (2024-05-01), Islami Bank Bangladesh's current share price is BDT32.60. Islami Bank Bangladesh's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec22 was BDT17.36. Islami Bank Bangladesh's Cyclically Adjusted Price-to-FCF for today is 1.88.

The historical rank and industry rank for Islami Bank Bangladesh's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

DHA:ISLAMIBANK's Cyclically Adjusted Price-to-FCF is not ranked *
in the Banks industry.
Industry Median: 7.39
* Ranked among companies with meaningful Cyclically Adjusted Price-to-FCF only.

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.

Islami Bank Bangladesh's adjusted free cash flow per share data of for the fiscal year that ended in Dec22 was BDT-56.546. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is BDT17.36 for the trailing ten years ended in Dec22.

Shiller PE for Stocks: The True Measure of Stock Valuation


Islami Bank Bangladesh Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Islami Bank Bangladesh'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.

Islami Bank Bangladesh Cyclically Adjusted Price-to-FCF Chart

Islami Bank Bangladesh Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cyclically Adjusted Price-to-FCF
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Islami Bank Bangladesh Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 - - - 1.90 -

Competitive Comparison of Islami Bank Bangladesh's Cyclically Adjusted Price-to-FCF

For the Banks - Regional subindustry, Islami Bank Bangladesh'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.


Islami Bank Bangladesh's Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

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

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



Islami Bank Bangladesh 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.

Islami Bank Bangladesh's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=32.60/17.36
=1.88

* 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.

Islami Bank Bangladesh's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec22 is calculated as:

For example, Islami Bank Bangladesh's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec22 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec22 (Change)*Current CPI (Dec22)
=-56.546/125.2218*125.2218
=-56.546

Current CPI (Dec22) = 125.2218.

Islami Bank Bangladesh Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 20.028 98.326 25.506
201412 30.809 99.070 38.942
201512 8.239 99.792 10.338
201612 -7.156 101.863 -8.797
201712 0.739 104.011 0.890
201812 -3.293 105.998 -3.890
201912 28.056 108.420 32.404
202012 80.655 109.897 91.902
202112 40.254 117.630 42.852
202212 -56.546 125.222 -56.546

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.


Islami Bank Bangladesh  (DHA:ISLAMIBANK) 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.


Islami Bank Bangladesh Cyclically Adjusted Price-to-FCF Related Terms

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Islami Bank Bangladesh (DHA:ISLAMIBANK) Business Description

Traded in Other Exchanges
N/A
Address
Islami Bank Tower, 40, Dilkusha Commercial Area, Dhaka, BGD, 1000
Islami Bank Bangladesh PLC is engaged in commercial banking business based on Islamic Shariah. The company product and services categories include Deposit; Investment; NRB(Non-Resident Bangladeshi) Entrepreneurs Services; SME Information; Locker Service and Offshore Banking Units (OBU). The Bank conducts its business on the Shari'ah principle of Mudaraba, Musharaka, Bai-Murabaha, Bai-Muajjal, Hire Purchase under Shirkatul Melk, Bai-Salam, Bai-as-Sarf and Ujarah etc.

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