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Primo Water (TSX:PRMW) Cyclically Adjusted Price-to-FCF : 21.28 (As of May. 01, 2024)


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What is Primo Water Cyclically Adjusted Price-to-FCF?

As of today (2024-05-01), Primo Water's current share price is C$25.96. Primo Water's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was C$1.22. Primo Water's Cyclically Adjusted Price-to-FCF for today is 21.28.

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

TSX:PRMW' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.97   Med: 15.6   Max: 21.35
Current: 21.35

During the past years, Primo Water's highest Cyclically Adjusted Price-to-FCF was 21.35. The lowest was 6.97. And the median was 15.60.

TSX:PRMW's Cyclically Adjusted Price-to-FCF is ranked worse than
52.94% of 51 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 21.22 vs TSX:PRMW: 21.35

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.

Primo Water's adjusted free cash flow per share data for the three months ended in Dec. 2023 was C$0.731. 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$1.22 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Primo Water Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Primo Water'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.

Primo Water Cyclically Adjusted Price-to-FCF Chart

Primo Water 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 14.57 18.35 20.16 18.43 16.41

Primo Water 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 18.43 16.67 13.10 14.94 16.41

Competitive Comparison of Primo Water's Cyclically Adjusted Price-to-FCF

For the Beverages - Non-Alcoholic subindustry, Primo Water'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.


Primo Water's Cyclically Adjusted Price-to-FCF Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Primo Water's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Primo Water 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.

Primo Water's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=25.96/1.22
=21.28

* 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.

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

For example, Primo Water'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)
=0.731/125.4675*125.4675
=0.731

Current CPI (Dec. 2023) = 125.4675.

Primo Water Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.740 98.604 -0.942
201406 0.188 99.473 0.237
201409 0.563 99.394 0.711
201412 0.015 98.367 0.019
201503 -0.413 99.789 -0.519
201506 0.564 100.500 0.704
201509 0.757 100.421 0.946
201512 1.298 99.947 1.629
201603 -0.590 101.054 -0.733
201606 0.554 102.002 0.681
201609 0.592 101.765 0.730
201612 0.797 101.449 0.986
201703 -0.317 102.634 -0.388
201706 0.683 103.029 0.832
201709 0.453 103.345 0.550
201712 0.551 103.345 0.669
201803 -0.761 105.004 -0.909
201806 0.007 105.557 0.008
201809 0.310 105.636 0.368
201812 0.657 105.399 0.782
201903 -0.003 106.979 -0.004
201906 -0.164 107.690 -0.191
201909 0.448 107.611 0.522
201912 1.054 107.769 1.227
202003 -0.499 107.927 -0.580
202006 0.286 108.401 0.331
202009 0.234 108.164 0.271
202012 0.328 108.559 0.379
202103 0.002 110.298 0.002
202106 0.154 111.720 0.173
202109 0.340 112.905 0.378
202112 0.572 113.774 0.631
202203 -0.138 117.646 -0.147
202206 0.141 120.806 0.146
202209 0.154 120.648 0.160
202212 0.776 120.964 0.805
202303 -0.188 122.702 -0.192
202306 0.317 124.203 0.320
202309 0.833 125.230 0.835
202312 0.731 125.468 0.731

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.


Primo Water  (TSX:PRMW) 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.


Primo Water Cyclically Adjusted Price-to-FCF Related Terms

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


Primo Water (TSX:PRMW) Business Description

Traded in Other Exchanges
Address
1200 Britannia Road East, Mississauga, ON, CAN, L4W 4T5
Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers in 21 countries, mostly in North America and Europe. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers. Primo generates 75% of revenue and all its profits in North America, while its European operation has yet to turn a profit.