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Ring Energy (FRA:KWE1) Cyclically Adjusted Price-to-FCF : (As of Dec. 14, 2024)


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What is Ring Energy Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Ring Energy Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Ring Energy'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.

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Ring Energy Cyclically Adjusted Price-to-FCF Chart

Ring Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Ring Energy Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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Competitive Comparison of Ring Energy's Cyclically Adjusted Price-to-FCF

For the Oil & Gas E&P subindustry, Ring Energy'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.


Ring Energy's Cyclically Adjusted Price-to-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Ring Energy's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Ring Energy 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.

Ring Energy's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2024 is calculated as:

For example, Ring Energy's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=0.041/133.0289*133.0289
=0.041

Current CPI (Sep. 2024) = 133.0289.

Ring Energy Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 -0.618 99.070 -0.830
201503 -0.568 99.621 -0.758
201506 -2.521 100.684 -3.331
201509 -0.107 100.392 -0.142
201512 -0.117 99.792 -0.156
201603 -0.167 100.470 -0.221
201606 -0.132 101.688 -0.173
201609 -0.129 101.861 -0.168
201612 -0.209 101.863 -0.273
201703 -0.288 102.862 -0.372
201706 -0.763 103.349 -0.982
201709 -0.471 104.136 -0.602
201712 -0.390 104.011 -0.499
201803 -0.697 105.290 -0.881
201806 -0.465 106.317 -0.582
201809 -0.369 106.507 -0.461
201812 -0.328 105.998 -0.412
201903 -0.633 107.251 -0.785
201906 -3.505 108.070 -4.315
201909 -0.119 108.329 -0.146
201912 3.632 108.420 4.456
202003 0.035 108.902 0.043
202006 -0.049 108.767 -0.060
202009 0.141 109.815 0.171
202012 0.171 109.897 0.207
202103 0.030 111.754 0.036
202106 0.044 114.631 0.051
202109 0.034 115.734 0.039
202112 0.052 117.630 0.059
202203 0.075 121.301 0.082
202206 0.032 125.017 0.034
202209 0.223 125.227 0.237
202212 0.102 125.222 0.108
202303 0.033 127.348 0.034
202306 0.033 128.729 0.034
202309 0.067 129.860 0.069
202312 0.071 129.419 0.073
202403 0.026 131.776 0.026
202406 0.064 132.554 0.064
202409 0.041 133.029 0.041

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.


Ring Energy  (FRA:KWE1) 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.


Ring Energy Cyclically Adjusted Price-to-FCF Related Terms

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Ring Energy Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Ring Energy Inc (FRA:KWE1) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
1725 Hughes Landing Boulevard, Suite 900, The Woodlands, TX, USA, 77380
Ring Energy Inc is an independent exploration and production company based in The Woodlands, Texas and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused in the Permian Basin of Texas. The drilling operations of the company target the oil and liquid rich producing formations in the Northwest Shelf, the Central Basin Platform, and the Delaware Basin all of which are part of the Permian Basin in Texas.

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