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ABB (FRA:ABJ) Cyclically Adjusted Price-to-FCF : (As of May. 21, 2024)


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What is ABB Cyclically Adjusted Price-to-FCF?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted Price-to-FCF for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


ABB Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for ABB'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.

ABB Cyclically Adjusted Price-to-FCF Chart

ABB 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 19.31 22.63 31.07 27.18 33.53

ABB 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 29.23 32.23 29.66 33.53 36.18

Competitive Comparison of ABB's Cyclically Adjusted Price-to-FCF

For the Electrical Equipment & Parts subindustry, ABB'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.


ABB's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ABB's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



ABB 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.

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

For example, ABB'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)
=0.272/107.3549*107.3549
=0.272

Current CPI (Mar. 2024) = 107.3549.

ABB Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.215 101.517 0.227
201409 0.320 101.247 0.339
201412 0.517 100.704 0.551
201503 -0.050 100.339 -0.053
201506 0.166 100.464 0.177
201509 0.394 99.785 0.424
201512 0.694 99.386 0.750
201603 0.034 99.475 0.037
201606 0.374 100.088 0.401
201609 0.374 99.604 0.403
201612 0.589 99.380 0.636
201703 0.138 100.040 0.148
201706 0.100 100.285 0.107
201709 0.294 100.254 0.315
201712 0.682 100.213 0.731
201803 -0.268 100.836 -0.285
201806 0.343 101.435 0.363
201809 0.150 101.246 0.159
201812 0.672 100.906 0.715
201903 -0.192 101.571 -0.203
201906 -0.070 102.044 -0.074
201909 0.220 101.396 0.233
201912 0.706 101.063 0.750
202003 -0.313 101.048 -0.333
202006 0.224 100.743 0.239
202009 0.112 100.585 0.120
202012 0.365 100.241 0.391
202103 0.166 100.800 0.177
202106 0.209 101.352 0.221
202109 0.395 101.533 0.418
202112 0.293 101.776 0.309
202203 -0.353 103.205 -0.367
202206 0.114 104.783 0.117
202209 0.335 104.835 0.343
202212 0.215 104.666 0.221
202303 0.065 106.245 0.066
202306 0.286 106.576 0.288
202309 0.591 106.570 0.595
202312 0.807 106.461 0.814
202403 0.272 107.355 0.272

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.


ABB  (FRA:ABJ) 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.


ABB Cyclically Adjusted Price-to-FCF Related Terms

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


ABB (FRA:ABJ) Business Description

Industry
Address
Affolternstrasse 44, Zurich, CHE, 8050
ABB is a supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation that are sold via approximately 20 business divisions. ABB is the number one or two supplier in two thirds of its product segments.

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