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Paragon Banking Group (LSE:PAG) Cyclically Adjusted Price-to-FCF : 1.97 (As of May. 22, 2024)


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What is Paragon Banking Group Cyclically Adjusted Price-to-FCF?

As of today (2024-05-22), Paragon Banking Group's current share price is £7.60. Paragon Banking Group's Cyclically Adjusted FCF per Share for the fiscal year that ended in Sep23 was £3.86. Paragon Banking Group's Cyclically Adjusted Price-to-FCF for today is 1.97.

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

LSE:PAG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.19   Med: 2.43   Max: 3.4
Current: 1.91

During the past 13 years, Paragon Banking Group's highest Cyclically Adjusted Price-to-FCF was 3.40. The lowest was 1.19. And the median was 2.43.

LSE:PAG's Cyclically Adjusted Price-to-FCF is ranked better than
88.37% of 834 companies
in the Banks industry
Industry Median: 7.49 vs LSE:PAG: 1.91

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.

Paragon Banking Group's adjusted free cash flow per share data of for the fiscal year that ended in Sep23 was £9.343. 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 £3.86 for the trailing ten years ended in Sep23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Paragon Banking Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Paragon Banking Group'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.

Paragon Banking Group Cyclically Adjusted Price-to-FCF Chart

Paragon Banking Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.99 1.81 2.56 1.44 1.27

Paragon Banking Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 2.56 - 1.44 - 1.27

Competitive Comparison of Paragon Banking Group's Cyclically Adjusted Price-to-FCF

For the Mortgage Finance subindustry, Paragon Banking Group'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.


Paragon Banking Group's Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Paragon Banking Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Paragon Banking Group 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.

Paragon Banking Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=7.60/3.86
=1.97

* 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.

Paragon Banking Group's Cyclically Adjusted FCF per Share for the fiscal year that ended in Sep23 is calculated as:

For example, Paragon Banking Group's adjusted Free Cash Flow per Share data for the fiscal year that ended in Sep23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Sep23 (Change)*Current CPI (Sep23)
=9.343/130.1000*130.1000
=9.343

Current CPI (Sep23) = 130.1000.

Paragon Banking Group Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201409 -0.946 100.000 -1.231
201509 -0.090 100.200 -0.117
201609 2.953 101.500 3.785
201709 5.265 104.300 6.567
201809 3.983 106.600 4.861
201909 1.494 108.400 1.793
202009 4.005 109.200 4.772
202109 3.345 112.400 3.872
202209 4.680 122.300 4.978
202309 9.343 130.100 9.343

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.


Paragon Banking Group  (LSE:PAG) 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.


Paragon Banking Group Cyclically Adjusted Price-to-FCF Related Terms

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Paragon Banking Group (LSE:PAG) Business Description

Traded in Other Exchanges
Address
51 Homer Road, Solihull, West Midlands, GBR, B91 3QJ
Paragon Banking Group PLC, is a specialty finance company that provides diversified banking services to clients. The company operates two core businesses: Mortgages Lending and Commercial Lending. The Mortgages Lending includes the Group's buy-to-let, and owner-occupied first and second charge lending and related activities. Commercial Lending, includes the Group's equipment and motor finance leasing activities, together with development finance, structured lending and other offerings targeted towards SME customers.