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Software AG (MEX:SOW) Cyclically Adjusted Price-to-FCF : 15.59 (As of Jun. 24, 2024)


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What is Software AG Cyclically Adjusted Price-to-FCF?

As of today (2024-06-24), Software AG's current share price is MXN591.54. Software AG's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 was MXN37.95. Software AG's Cyclically Adjusted Price-to-FCF for today is 15.59.

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

MEX:SOW' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.89   Med: 15.38   Max: 19.68
Current: 18.47

During the past years, Software AG's highest Cyclically Adjusted Price-to-FCF was 19.68. The lowest was 8.89. And the median was 15.38.

MEX:SOW's Cyclically Adjusted Price-to-FCF is ranked better than
66.23% of 684 companies
in the Software industry
Industry Median: 28.575 vs MEX:SOW: 18.47

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.

Software AG's adjusted free cash flow per share data for the three months ended in Sep. 2023 was MXN2.890. 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 MXN37.95 for the trailing ten years ended in Sep. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Software AG Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Software AG'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.

Software AG Cyclically Adjusted Price-to-FCF Chart

Software AG Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.70 13.54 15.55 16.19 11.54

Software AG Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 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 10.95 11.54 9.58 15.57 15.60

Competitive Comparison of Software AG's Cyclically Adjusted Price-to-FCF

For the Software - Infrastructure subindustry, Software AG'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.


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

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

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



Software AG 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=591.54/37.95
=15.59

* 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.

Software AG's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 is calculated as:

For example, Software AG's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=2.89/124.1946*124.1946
=2.890

Current CPI (Sep. 2023) = 124.1946.

Software AG Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 11.636 99.356 14.545
201403 10.507 99.543 13.109
201406 4.395 99.543 5.483
201409 4.262 99.823 5.303
201412 10.694 99.543 13.342
201503 12.533 99.717 15.610
201506 10.216 100.417 12.635
201509 6.016 100.417 7.441
201512 10.291 99.717 12.817
201603 15.089 100.017 18.737
201606 15.042 100.717 18.548
201609 9.448 101.017 11.616
201612 12.077 101.217 14.819
201703 11.425 101.417 13.991
201706 12.149 102.117 14.776
201709 10.401 102.717 12.576
201712 12.752 102.617 15.433
201803 18.094 102.917 21.835
201806 9.637 104.017 11.506
201809 10.777 104.718 12.781
201812 17.359 104.217 20.687
201903 17.041 104.217 20.308
201906 8.215 105.718 9.651
201909 8.508 106.018 9.967
201912 13.012 105.818 15.272
202003 20.321 105.718 23.873
202006 8.231 106.618 9.588
202009 2.815 105.818 3.304
202012 4.423 105.518 5.206
202103 15.044 107.518 17.377
202106 7.258 108.486 8.309
202109 5.756 109.435 6.532
202112 6.062 110.384 6.820
202203 8.162 113.968 8.894
202206 -6.674 115.760 -7.160
202209 1.734 118.818 1.812
202212 -2.011 119.345 -2.093
202303 6.239 122.402 6.330
202306 -8.227 123.140 -8.297
202309 2.890 124.195 2.890

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.


Software AG  (MEX:SOW) 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.


Software AG Cyclically Adjusted Price-to-FCF Related Terms

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


Software AG (MEX:SOW) Business Description

Industry
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Address
Uhlandstrasse 12, Darmstadt, HE, DEU, 64297
Software AG is a Germany-based provider of software solutions for the banking, communication and media, local and federal government, energy, insurance, transportation, retail, and manufacturing end markets. Its services include business process management, portfolio management, risk and compliance management, operational intelligence, and streaming analytics, many of which are delivered via cloud-based software applications. The firm has operations in Germany; the USA and other countries.

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