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ABB (XSWX:ABBNE) Cyclically Adjusted Price-to-FCF : (As of Apr. 29, 2024)


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What is ABB Cyclically Adjusted Price-to-FCF?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted Price-to-FCF for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


ABB Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for ABB'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.

ABB Cyclically Adjusted Price-to-FCF Chart

ABB 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 19.31 22.63 31.07 27.18 33.53

ABB 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 29.23 32.23 29.66 33.53 36.48

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

For the Electrical Equipment & Parts subindustry, ABB'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.


ABB's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ABB's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



ABB 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.

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

For example, ABB'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)
=0.227/106.4611*106.4611
=0.227

Current CPI (Mar. 2024) = 106.4611.

ABB Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.261 101.517 0.274
201409 0.386 101.247 0.406
201412 0.616 100.704 0.651
201503 -0.053 100.339 -0.056
201506 0.173 100.464 0.183
201509 0.430 99.785 0.459
201512 0.743 99.386 0.796
201603 0.037 99.475 0.040
201606 0.407 100.088 0.433
201609 0.408 99.604 0.436
201612 0.634 99.380 0.679
201703 0.149 100.040 0.159
201706 0.110 100.285 0.117
201709 0.338 100.254 0.359
201712 0.803 100.213 0.853
201803 -0.315 100.836 -0.333
201806 0.397 101.435 0.417
201809 0.169 101.246 0.178
201812 0.758 100.906 0.800
201903 -0.217 101.571 -0.227
201906 -0.078 102.044 -0.081
201909 0.240 101.396 0.252
201912 0.771 101.063 0.812
202003 -0.332 101.048 -0.350
202006 0.241 100.743 0.255
202009 0.120 100.585 0.127
202012 0.383 100.241 0.407
202103 0.175 100.800 0.185
202106 0.218 101.352 0.229
202109 0.405 101.533 0.425
202112 0.284 101.776 0.297
202203 -0.331 103.205 -0.341
202206 0.105 104.783 0.107
202209 0.285 104.835 0.289
202212 0.187 104.666 0.190
202303 0.057 106.245 0.057
202306 0.244 106.576 0.244
202309 0.495 106.570 0.494
202312 0.661 106.461 0.661
202403 0.227 106.461 0.227

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.


ABB  (XSWX:ABBNE) 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.


ABB Cyclically Adjusted Price-to-FCF Related Terms

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


ABB (XSWX:ABBNE) Business Description

Industry
Address
Affolternstrasse 44, Zurich, CHE, 8050
ABB is a supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation that are sold via approximately 20 business divisions. ABB is the number one or two supplier in two thirds of its product segments.

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