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Credit Acceptance (FRA:2D5) Cyclically Adjusted Price-to-FCF : 8.84 (As of May. 19, 2024)


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What is Credit Acceptance Cyclically Adjusted Price-to-FCF?

As of today (2024-05-19), Credit Acceptance's current share price is €452.00. Credit Acceptance's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €51.15. Credit Acceptance's Cyclically Adjusted Price-to-FCF for today is 8.84.

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

FRA:2D5' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 7.89   Med: 18.62   Max: 29.68
Current: 8.9

During the past years, Credit Acceptance's highest Cyclically Adjusted Price-to-FCF was 29.68. The lowest was 7.89. And the median was 18.62.

FRA:2D5's Cyclically Adjusted Price-to-FCF is ranked better than
51.92% of 104 companies
in the Credit Services industry
Industry Median: 9.73 vs FRA:2D5: 8.90

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.

Credit Acceptance's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €22.529. 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 €51.15 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Credit Acceptance Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Credit Acceptance'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.

Credit Acceptance Cyclically Adjusted Price-to-FCF Chart

Credit Acceptance 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 20.24 12.90 20.14 10.79 10.06

Credit Acceptance Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 9.36 10.39 8.97 10.06 9.87

Competitive Comparison of Credit Acceptance's Cyclically Adjusted Price-to-FCF

For the Credit Services subindustry, Credit Acceptance'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.


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

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

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



Credit Acceptance 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.

Credit Acceptance's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=452.00/51.15
=8.84

* 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.

Credit Acceptance's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Credit Acceptance'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)
=22.529/131.7762*131.7762
=22.529

Current CPI (Mar. 2024) = 131.7762.

Credit Acceptance Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 2.586 100.560 3.389
201409 3.395 100.428 4.455
201412 3.635 99.070 4.835
201503 5.121 99.621 6.774
201506 3.028 100.684 3.963
201509 4.669 100.392 6.129
201512 4.491 99.792 5.930
201603 3.945 100.470 5.174
201606 5.921 101.688 7.673
201609 5.870 101.861 7.594
201612 6.592 101.863 8.528
201703 7.504 102.862 9.613
201706 4.445 103.349 5.668
201709 6.560 104.136 8.301
201712 6.465 104.011 8.191
201803 8.587 105.290 10.747
201806 4.335 106.317 5.373
201809 7.662 106.507 9.480
201812 8.914 105.998 11.082
201903 10.478 107.251 12.874
201906 7.440 108.070 9.072
201909 9.587 108.329 11.662
201912 9.524 108.420 11.576
202003 11.292 108.902 13.664
202006 13.588 108.767 16.462
202009 13.094 109.815 15.713
202012 9.288 109.897 11.137
202103 15.936 111.754 18.791
202106 16.853 114.631 19.374
202109 14.327 115.734 16.313
202112 7.790 117.630 8.727
202203 23.703 121.301 25.750
202206 17.509 125.017 18.456
202209 24.592 125.227 25.878
202212 20.291 125.222 21.353
202303 21.119 127.348 21.853
202306 19.813 128.729 20.282
202309 22.527 129.860 22.859
202312 22.111 129.419 22.514
202403 22.529 131.776 22.529

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.


Credit Acceptance  (FRA:2D5) 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.


Credit Acceptance Cyclically Adjusted Price-to-FCF Related Terms

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


Credit Acceptance (FRA:2D5) Business Description

Traded in Other Exchanges
Address
25505 W. Twelve Mile Road, Southfield, MI, USA, 48034-8339
Credit Acceptance Corp is a consumer finance company that specializes in automobile loans. These loans are offered through a U.S. nationwide network of automobile dealers that benefit from sales of vehicles to consumers who could otherwise not obtain financing. The company also benefits from repeat and referral sales, and from sales to customers responding to advertisements for financing, but qualify for traditional financing. The company derives its revenue from finance charges, premiums earned on the reinsurance of vehicle service contracts, and other fees. Of these, financing charges, including servicing fees, are by far the largest source of revenue.

Credit Acceptance (FRA:2D5) Headlines

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