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RS2 (LTS:0MVH) Cyclically Adjusted Price-to-FCF : (As of Jun. 25, 2024)


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What is RS2 Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


RS2 Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for RS2'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.

RS2 Cyclically Adjusted Price-to-FCF Chart

RS2 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 190.25 221.83 148.19 114.70 148.75

RS2 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 148.19 - 114.70 - 148.75

Competitive Comparison of RS2's Cyclically Adjusted Price-to-FCF

For the Software - Infrastructure subindustry, RS2'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.


RS2's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, RS2's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where RS2's Cyclically Adjusted Price-to-FCF falls into.



RS2 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.

RS2's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, RS2'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)
=0.007/129.4194*129.4194
=0.007

Current CPI (Dec23) = 129.4194.

RS2 Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 0.041 99.070 0.054
201512 0.036 99.792 0.047
201612 0.010 101.863 0.013
201712 0.019 104.011 0.024
201812 -0.004 105.998 -0.005
201912 -0.017 108.420 -0.020
202012 -0.001 109.897 -0.001
202112 -0.016 117.630 -0.018
202212 -0.019 125.222 -0.020
202312 0.007 129.419 0.007

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.


RS2  (LTS:0MVH) 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.


RS2 Cyclically Adjusted Price-to-FCF Related Terms

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RS2 (LTS:0MVH) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » RS2 PLC (LTS:0MVH) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
Fort Road, RS2 Buildings, Mosta, MLT, 1859
RS2 PLC is engaged in providing Payments Software and Managed Services. It is involved in the development, installation, implementation, and marketing of computer software for financial institutions under the trademark of BankWORKS and the processing of payment transactions with the use of BankWORKS. Its segments include Licensing of the company's BankWORKS software to banks and Service providers, including maintenance and enhanced services thereto; Processing of payment transactions utilizing the group's BankWORKS software; and Merchant Solutions, which include issuing and acquiring payment solutions directly to merchants, including terminal and PSP gateway services. Its geographic segments include Malta, the United Kingdom and Ireland, the United States, and Other countries.

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