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Sodexo (WBO:SW) Cyclically Adjusted Price-to-FCF : 15.10 (As of May. 01, 2024)


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What is Sodexo Cyclically Adjusted Price-to-FCF?

As of today (2024-05-01), Sodexo's current share price is €79.45. Sodexo's Cyclically Adjusted FCF per Share for the fiscal year that ended in Aug23 was €5.26. Sodexo's Cyclically Adjusted Price-to-FCF for today is 15.10.

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

WBO:SW' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.74   Med: 15.36   Max: 23.11
Current: 14.94

During the past 13 years, Sodexo's highest Cyclically Adjusted Price-to-FCF was 23.11. The lowest was 8.74. And the median was 15.36.

WBO:SW's Cyclically Adjusted Price-to-FCF is ranked better than
55.99% of 359 companies
in the Business Services industry
Industry Median: 17.26 vs WBO:SW: 14.94

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.

Sodexo's adjusted free cash flow per share data of for the fiscal year that ended in Aug23 was €7.028. 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 €5.26 for the trailing ten years ended in Aug23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sodexo Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Sodexo'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.

Sodexo Cyclically Adjusted Price-to-FCF Chart

Sodexo Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.10 10.20 11.61 12.01 13.68

Sodexo Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 - 12.01 - 13.68 -

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

For the Specialty Business Services subindustry, Sodexo'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.


Sodexo's Cyclically Adjusted Price-to-FCF Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Sodexo's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Sodexo 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=79.45/5.26
=15.10

* 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.

Sodexo's Cyclically Adjusted FCF per Share for the fiscal year that ended in Aug23 is calculated as:

For example, Sodexo's adjusted Free Cash Flow per Share data for the fiscal year that ended in Aug23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Aug23 (Change)*Current CPI (Aug23)
=7.028/118.8900*118.8900
=7.028

Current CPI (Aug23) = 118.8900.

Sodexo Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201408 3.776 100.300 4.476
201508 4.639 100.350 5.496
201608 3.913 100.580 4.625
201708 4.985 101.490 5.840
201808 5.356 103.780 6.136
201908 5.874 104.860 6.660
202008 1.582 105.090 1.790
202108 4.647 107.050 5.161
202208 5.194 113.380 5.446
202308 7.028 118.890 7.028

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.


Sodexo  (WBO:SW) 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.


Sodexo Cyclically Adjusted Price-to-FCF Related Terms

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


Sodexo (WBO:SW) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Sodexo (WBO:SW) » Definitions » Cyclically Adjusted Price-to-FCF
Address
255 Quai de la Bataille de Stalingrad, Issy-les-Moulineaux (Hauts-de-Seine), Cedex 9, Paris, FRA, 92130
Sodexo is one of the largest food service companies globally, operating in more than 80 countries with annual sales of over EUR 21 billion. Sodexo's model stems from operating on-premise catering facilities, rather than centralised industrial kitchens. While food services remains the largest business segment (58% of revenue in 2022), the company has actively pursued a strategy of diversifying its business activities into other areas, such as facilities-management services, which now represents 38% of group revenue.

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