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Radian Group (STU:RAG) Cyclically Adjusted Price-to-FCF : 12.82 (As of Jun. 20, 2024)


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What is Radian Group Cyclically Adjusted Price-to-FCF?

As of today (2024-06-20), Radian Group's current share price is €28.20. Radian Group's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €2.20. Radian Group's Cyclically Adjusted Price-to-FCF for today is 12.82.

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

STU:RAG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 12.04   Med: 19.17   Max: 120.6
Current: 12.52

During the past years, Radian Group's highest Cyclically Adjusted Price-to-FCF was 120.60. The lowest was 12.04. And the median was 19.17.

STU:RAG's Cyclically Adjusted Price-to-FCF is ranked worse than
56.97% of 323 companies
in the Insurance industry
Industry Median: 10.56 vs STU:RAG: 12.52

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.

Radian Group's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €0.292. 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 €2.20 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Radian Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Radian 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.

Radian Group Cyclically Adjusted Price-to-FCF Chart

Radian Group 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 - - 34.20 13.86 12.52

Radian Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 13.66 14.26 12.27 12.52 13.74

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

For the Insurance - Specialty subindustry, Radian 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.


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

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

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



Radian 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=28.20/2.2
=12.82

* 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.

Radian Group's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Radian Group's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.292/131.7762*131.7762
=0.292

Current CPI (Mar. 2024) = 131.7762.

Radian Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.409 100.560 -0.536
201409 0.110 100.428 0.144
201412 0.231 99.070 0.307
201503 -0.014 99.621 -0.019
201506 -0.273 100.684 -0.357
201509 0.185 100.392 0.243
201512 0.050 99.792 0.066
201603 0.121 100.470 0.159
201606 0.400 101.688 0.518
201609 0.493 101.861 0.638
201612 0.366 101.863 0.473
201703 0.322 102.862 0.413
201706 0.483 103.349 0.616
201709 0.001 104.136 0.001
201712 0.530 104.011 0.671
201803 0.420 105.290 0.526
201806 0.687 106.317 0.852
201809 0.720 106.507 0.891
201812 0.727 105.998 0.904
201903 0.856 107.251 1.052
201906 0.463 108.070 0.565
201909 0.710 108.329 0.864
201912 0.777 108.420 0.944
202003 0.676 108.902 0.818
202006 0.661 108.767 0.801
202009 0.828 109.815 0.994
202012 0.664 109.897 0.796
202103 0.650 111.754 0.766
202106 0.511 114.631 0.587
202109 0.559 115.734 0.636
202112 0.728 117.630 0.816
202203 0.571 121.301 0.620
202206 0.306 125.017 0.323
202209 0.617 125.227 0.649
202212 0.587 125.222 0.618
202303 0.648 127.348 0.671
202306 0.386 128.729 0.395
202309 0.415 129.860 0.421
202312 1.528 129.419 1.556
202403 0.292 131.776 0.292

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.


Radian Group  (STU:RAG) 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.


Radian Group Cyclically Adjusted Price-to-FCF Related Terms

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


Radian Group (STU:RAG) Business Description

Industry
Traded in Other Exchanges
Address
550 East Swedesford Road, Suite 350, Wayne, PA, USA, 19087
Radian Group Inc provides mortgage insurance and services to the real estate and mortgage finance industries. Radian's mortgage insurance provides coverage to lending institutions throughout the United States. Its services include analytics and consulting for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities and other asset-backed securities. Insurance premiums account for more than three fourths of the company's revenue. Services revenue and investment income are the other principal sources of revenue. It operates in two segments: Mortgage and homegenius. The Mortgage segment earns the majority of revenue.

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