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Derwent London (LSE:DLN) Cyclically Adjusted Price-to-FCF : (As of May. 16, 2024)


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What is Derwent London Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Derwent London Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Derwent London'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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Derwent London Cyclically Adjusted Price-to-FCF Chart

Derwent London Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Derwent London Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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Competitive Comparison of Derwent London's Cyclically Adjusted Price-to-FCF

For the REIT - Office subindustry, Derwent London'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.


Derwent London's Cyclically Adjusted Price-to-FCF Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Derwent London's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Derwent London 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.

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

For example, Derwent London'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)
=-0.491/130.0000*130.0000
=-0.491

Current CPI (Dec23) = 130.0000.

Derwent London Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 -0.465 99.900 -0.605
201512 -0.373 100.400 -0.483
201612 -1.257 102.200 -1.599
201712 -0.828 105.000 -1.025
201812 -0.654 107.100 -0.794
201912 -0.957 108.500 -1.147
202012 -0.516 109.400 -0.613
202112 -0.399 114.700 -0.452
202212 -0.101 125.300 -0.105
202312 -0.491 130.000 -0.491

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.


Derwent London  (LSE:DLN) 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.


Derwent London Cyclically Adjusted Price-to-FCF Related Terms

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Derwent London (LSE:DLN) Business Description

Industry
Traded in Other Exchanges
Address
25 Savile Row, London, GBR, W1S 2ER
Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.

Derwent London (LSE:DLN) Headlines

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