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Prudential (HKSE:02378) Cyclically Adjusted Price-to-FCF : 11.34 (As of May. 27, 2024)


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What is Prudential Cyclically Adjusted Price-to-FCF?

As of today (2024-05-27), Prudential's current share price is HK$76.00. Prudential's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 was HK$6.70. Prudential's Cyclically Adjusted Price-to-FCF for today is 11.34.

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

HKSE:02378' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 10.39   Med: 21   Max: 32.9
Current: 11.25

During the past 13 years, Prudential's highest Cyclically Adjusted Price-to-FCF was 32.90. The lowest was 10.39. And the median was 21.00.

HKSE:02378's Cyclically Adjusted Price-to-FCF is ranked worse than
50.32% of 314 companies
in the Insurance industry
Industry Median: 11.28 vs HKSE:02378: 11.25

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.

Prudential's adjusted free cash flow per share data of for the fiscal year that ended in Dec23 was HK$2.240. 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 HK$6.70 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Prudential Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Prudential'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.

Prudential Cyclically Adjusted Price-to-FCF Chart

Prudential 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 21.20 19.81 20.35 16.42 13.04

Prudential Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 20.35 - 16.42 - 13.04

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

For the Insurance - Life subindustry, Prudential'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.


Prudential's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

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

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



Prudential 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=76.00/6.7
=11.34

* 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.

Prudential's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Prudential's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=2.24/130.5000*130.5000
=2.240

Current CPI (Dec23) = 130.5000.

Prudential Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 7.832 99.900 10.231
201512 10.229 100.400 13.296
201612 6.924 102.200 8.841
201712 6.110 105.000 7.594
201812 9.777 107.100 11.913
201912 3.539 108.500 4.257
202012 8.107 109.400 9.671
202112 0.718 114.700 0.817
202212 2.971 125.300 3.094
202312 2.240 130.500 2.240

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.


Prudential  (HKSE:02378) 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.


Prudential Cyclically Adjusted Price-to-FCF Related Terms

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


Prudential (HKSE:02378) Business Description

Industry
Address
1 Angel Court, London, GBR, EC2R 7AG
Originally established as Prudential Mutual Assurance, Investment, and Loan Association in 1848, Prudential plc has moved on a lot since then. Set up to sell life insurance and loans to the middle and then the industrializing and urbanizing working classes, the company subsequently diversified into Europe and then North America with the purchase of Jackson National Life in around 1985. During its time as owner of Jackson, Prudential focused on building out a simple chassis-style product portfolio where customers could choose a variety of add-ons. The company also became renowned for its focus on building requisite internal capabilities to support its strong product offerings, including compelling technology and a large and well-trained distribution force.

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