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tw telecom (FRA:TWM) Cyclically Adjusted Price-to-FCF : (As of Jun. 16, 2024)


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What is tw telecom Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


tw telecom Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for tw telecom'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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tw telecom Cyclically Adjusted Price-to-FCF Chart

tw telecom Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Cyclically Adjusted Price-to-FCF
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tw telecom Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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Competitive Comparison of tw telecom's Cyclically Adjusted Price-to-FCF

For the Telecom Services subindustry, tw telecom'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.


tw telecom's Cyclically Adjusted Price-to-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, tw telecom's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



tw telecom 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.

tw telecom's Cyclically Adjusted FCF per Share for the quarter that ended in Jun. 2014 is calculated as:

For example, tw telecom's adjusted Free Cash Flow per Share data for the three months ended in Jun. 2014 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jun. 2014 (Change)*Current CPI (Jun. 2014)
=0.08/100.5595*100.5595
=0.080

Current CPI (Jun. 2014) = 100.5595.

tw telecom Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
200409 -0.299 80.121 -0.375
200412 -0.034 80.290 -0.043
200503 -0.334 81.555 -0.412
200506 0.065 82.062 0.080
200509 -0.054 83.876 -0.065
200512 0.123 83.032 0.149
200603 -0.193 84.298 -0.230
200606 -0.003 85.606 -0.004
200609 0.012 85.606 0.014
200612 0.047 85.142 0.056
200703 -0.082 86.640 -0.095
200706 -0.039 87.906 -0.045
200709 -0.001 87.964 -0.001
200712 0.140 88.616 0.159
200803 -0.003 90.090 -0.003
200806 0.021 92.320 0.023
200809 0.020 92.307 0.022
200812 0.099 88.697 0.112
200903 -0.012 89.744 -0.013
200906 0.182 91.003 0.201
200909 0.219 91.120 0.242
200912 0.181 91.111 0.200
201003 0.081 91.821 0.089
201006 0.038 91.962 0.042
201009 0.139 92.162 0.152
201012 0.053 92.474 0.058
201103 0.094 94.283 0.100
201106 0.122 95.235 0.129
201109 -0.042 95.727 -0.044
201112 0.129 95.213 0.136
201203 0.089 96.783 0.092
201206 0.178 96.819 0.185
201209 0.143 97.633 0.147
201212 0.236 96.871 0.245
201303 -0.031 98.209 -0.032
201306 0.129 98.518 0.132
201309 0.138 98.790 0.140
201312 0.105 98.326 0.107
201403 0.070 99.695 0.071
201406 0.080 100.560 0.080

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.


tw telecom  (FRA:TWM) 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.


tw telecom Cyclically Adjusted Price-to-FCF Related Terms

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


tw telecom (FRA:TWM) Business Description

Traded in Other Exchanges
N/A
Address
Tw telecom inc was formed in 1998. The Company together with its wholly-owned subsidiaries provide managed network services, specializing in business Ethernet, data networking, Converged, IP-based virtual private network or "IP VPN", Internet access, voice, including voice over Internet Protocol or "VoIP", and network security services to enterprise organizations, including public sector entities, and carriers throughout the U.S., including global locations. It offers a portfolio of solutions to its customers with predictable and reliable service quality. It designs and deliver scalable and efficient solutions that enable its customers complex and evolving business applications. These solutions emphasize its data networking service offerings, which include an expanding portfolio of business Ethernet data services, managed network services and its converged service offerings comprised of data, Internet, voice, security, remote access and managed routers. It also provides a broad range of traditional services, including a dedicated network service portfolio with private line, special access and private transport services, voice services and secure Internet access. Its customers include enterprise organizations in a wide variety of industry segments, including, among others, the financial services, technology and science, health care, distribution, manufacturing and professional services industries, data centers, cloud application providers, public sector entities, system integrators and communications service providers, including ILECs, CLECs, wireless communications companies and cable companies. Its primary competition is from the ILECs, CLECs and cable companies. The ILECs, primarily AT&T Inc., Verizon Communications, Inc. and CenturyLink Inc., other CLECs and some cable companies offer services substantially similar to some of those it offers and target some of the same customers. The Company is subject to regulation by the Federal Communications Commission ("FCC"), state regulatory authorities and local government agencies.