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Power of Canada (TSX:POW.PR.E) Cyclically Adjusted Price-to-FCF : 2.63 (As of Apr. 30, 2024)


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What is Power of Canada Cyclically Adjusted Price-to-FCF?

As of today (2024-04-30), Power of Canada's current share price is C$41.00. Power of Canada's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was C$15.57. Power of Canada's Cyclically Adjusted Price-to-FCF for today is 2.63.

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

TSX:POW.PR.E' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.33   Med: 2.37   Max: 2.98
Current: 2.42

During the past years, Power of Canada's highest Cyclically Adjusted Price-to-FCF was 2.98. The lowest was 1.33. And the median was 2.37.

TSX:POW.PR.E's Cyclically Adjusted Price-to-FCF is ranked better than
88.96% of 326 companies
in the Insurance industry
Industry Median: 11.06 vs TSX:POW.PR.E: 2.42

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.

Power of Canada's adjusted free cash flow per share data for the three months ended in Dec. 2023 was C$7.566. 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 C$15.57 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Power of Canada Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Power of Canada'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.

Power of Canada Cyclically Adjusted Price-to-FCF Chart

Power of Canada 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 2.31 2.02 2.72 2.07 2.50

Power of Canada Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 2.07 2.27 2.37 2.34 2.50

Competitive Comparison of Power of Canada's Cyclically Adjusted Price-to-FCF

For the Insurance - Life subindustry, Power of Canada'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.


Power of Canada's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

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

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



Power of Canada 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.

Power of Canada's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=41.00/15.57
=2.63

* 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.

Power of Canada's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Power of Canada's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=7.566/125.4675*125.4675
=7.566

Current CPI (Dec. 2023) = 125.4675.

Power of Canada Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 2.748 98.604 3.497
201406 3.357 99.473 4.234
201409 5.083 99.394 6.416
201412 1.726 98.367 2.202
201503 2.606 99.789 3.277
201506 3.366 100.500 4.202
201509 3.645 100.421 4.554
201512 2.683 99.947 3.368
201603 2.736 101.054 3.397
201606 4.409 102.002 5.423
201609 4.193 101.765 5.170
201612 3.186 101.449 3.940
201703 3.110 102.634 3.802
201706 2.911 103.029 3.545
201709 3.892 103.345 4.725
201712 4.889 103.345 5.936
201803 2.502 105.004 2.990
201806 2.989 105.557 3.553
201809 5.821 105.636 6.914
201812 3.951 105.399 4.703
201903 1.595 106.979 1.871
201906 6.994 107.690 8.149
201909 3.535 107.611 4.122
201912 3.140 107.769 3.656
202003 3.437 107.927 3.996
202006 2.574 108.401 2.979
202009 6.578 108.164 7.630
202012 2.928 108.559 3.384
202103 2.401 110.298 2.731
202106 1.647 111.720 1.850
202109 8.402 112.905 9.337
202112 2.916 113.774 3.216
202203 1.759 117.646 1.876
202206 3.748 120.806 3.893
202209 2.207 120.648 2.295
202212 -2.624 120.964 -2.722
202303 -2.090 122.702 -2.137
202306 1.017 124.203 1.027
202309 0.778 125.230 0.779
202312 7.566 125.468 7.566

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.


Power of Canada  (TSX:POW.PR.E) 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.


Power of Canada Cyclically Adjusted Price-to-FCF Related Terms

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


Power of Canada (TSX:POW.PR.E) Business Description

Address
751 Victoria Square, Montreal, QC, CAN, H2Y 2J3
Power Corporation of Canada is a holding company with controlling interests in Great-West Life (an insurance conglomerate), IGM Financial (Canada's largest nonbank asset manager), and other alternative asset-management platforms (Sagard and Power Sustainable). The company also has minority interests in Groupe Bruxelles Lambert (a holding company with interests in European companies) and ChinaAMC (an asset manager in China).

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