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Digital River (FRA:RIV) Cyclically Adjusted Price-to-FCF : (As of Jun. 19, 2024)


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What is Digital River Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Digital River Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Digital River'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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Digital River Cyclically Adjusted Price-to-FCF Chart

Digital River Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Cyclically Adjusted Price-to-FCF
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Digital River Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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Competitive Comparison of Digital River's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, Digital River'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.


Digital River's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Digital River's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Digital River 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.

Digital River's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2014 is calculated as:

For example, Digital River's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2014 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Sep. 2014 (Change)*Current CPI (Sep. 2014)
=0.002/100.4278*100.4278
=0.002

Current CPI (Sep. 2014) = 100.4278.

Digital River Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
200412 0.436 80.290 0.545
200503 0.431 81.555 0.531
200506 0.177 82.062 0.217
200509 0.478 83.876 0.572
200512 1.116 83.032 1.350
200603 0.738 84.298 0.879
200606 -0.030 85.606 -0.035
200609 0.638 85.606 0.748
200612 0.487 85.142 0.574
200703 0.782 86.640 0.906
200706 -0.103 87.906 -0.118
200709 0.530 87.964 0.605
200712 0.798 88.616 0.904
200803 0.599 90.090 0.668
200806 -0.154 92.320 -0.168
200809 0.518 92.307 0.564
200812 0.122 88.697 0.138
200903 0.981 89.744 1.098
200906 -0.389 91.003 -0.429
200909 0.953 91.120 1.050
200912 0.452 91.111 0.498
201003 -0.035 91.821 -0.038
201006 -0.668 91.962 -0.729
201009 0.372 92.162 0.405
201012 1.048 92.474 1.138
201103 -0.295 94.283 -0.314
201106 -0.369 95.235 -0.389
201109 0.449 95.727 0.471
201112 1.789 95.213 1.887
201203 -0.567 96.783 -0.588
201206 -0.772 96.819 -0.801
201209 0.457 97.633 0.470
201212 1.288 96.871 1.335
201303 -0.405 98.209 -0.414
201306 -1.397 98.518 -1.424
201309 0.377 98.790 0.383
201312 0.533 98.326 0.544
201403 -0.343 99.695 -0.346
201406 0.224 100.560 0.224
201409 0.002 100.428 0.002

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.


Digital River  (FRA:RIV) 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.


Digital River Cyclically Adjusted Price-to-FCF Related Terms

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Digital River (FRA:RIV) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Digital River, Inc., was incorporated in Delaware in February 1994. The Company provides end-to-end e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets. It offers its clients, services that enables them to quickly and cost effectively establish an online sales channel capability and to subsequently manage and grow online sales while mitigating risks. Its services include design, development and hosting of online stores and shopping carts, store merchandising and optimization, order management, denied parties screening, export controls and management, tax compliance and management, fraud management, digital product delivery via download, physical product fulfillment, subscription management, online marketing including e-mail marketing, management of affiliate programs, paid search programs, payment processing services, website optimization, web analytics and reporting, and CD production and delivery. Its products and services allow its clients to focus on promoting and marketing their products and brands while leveraging its investments in technology and infrastructure to facilitate the purchase of products through their online websites. Shoppers could browse for products and make purchases online. The Company typically is the seller of record for transactions through its client branded stores. It also processes the buyer's payment as the merchant of record, including collection and remittance of applicable taxes. The Company's e-commerce store solutions range from simple remote control models to more comprehensive online store models. In addition to the services the Company provides, that facilitate the completion of an online transaction, it also offers services designed to increase traffic to its clients' websites and the associated online stores and to improve the sales productivity of those stores. The Company's services include paid search advertising, search engine optimization affiliate marketing, store optimization, multi-variant testing, web analytic services and e-mail optimization. All of the services are designed to help its clients acquire customers more effectively, sell to those customers more often and more efficiently, and increase the lifetime value of each customer. The Company sells its products and services to consumers through the Internet. It sells and markets its services for clients through a direct sales force located in offices in the United States, Europe and Asia Pacific. Some of the competitors of the Company are Art Technology Group, Inc., IBM Corporation, IBM Global Services, Accenture, Inc., GSI Commerce, Inc., asknet Inc., Arvato, ValueClick, Inc. and aQuantive, Inc. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the internet.