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Apple (NAS:AAPL) Cyclically Adjusted FCF per Share

: $4.68 (As of Dec. 2023)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

Apple's adjusted free cash flow per share for the three months ended in Dec. 2023 was $2.408. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $4.68 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Apple's average Cyclically Adjusted FCF Growth Rate was 14.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 19.70% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 18.90% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 20.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Apple was 71.00% per year. The lowest was -20.60% per year. And the median was 26.00% per year.

As of today (2024-02-24), Apple's current stock price is $182.52. Apple's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $4.68. Apple's Cyclically Adjusted Price-to-FCF of today is 39.00.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Apple was 55.56. The lowest was 17.54. And the median was 29.02.


Apple Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Apple's Cyclically Adjusted FCF per Share 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.

Apple Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.29 2.66 3.23 4.00 4.56

Apple Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted FCF per Share 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 Premium Member Only Premium Member Only Premium Member Only 4.08 4.26 4.43 4.56 4.68

Competitive Comparison

For the Consumer Electronics subindustry, Apple'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.


Apple Cyclically Adjusted Price-to-FCF Distribution

For the Hardware industry and Technology sector, Apple's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Apple Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

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. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

For example, Apple'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)
=2.408/129.4194*129.4194
=2.408

Current CPI (Dec. 2023) = 129.4194.

Apple Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.489 99.695 0.635
201406 0.323 100.560 0.416
201409 0.393 100.428 0.506
201412 1.295 99.070 1.692
201503 0.711 99.621 0.924
201506 0.559 100.684 0.719
201509 0.432 100.392 0.557
201512 1.048 99.792 1.359
201603 0.406 100.470 0.523
201606 0.353 101.688 0.449
201609 0.617 101.861 0.784
201612 1.117 101.863 1.419
201703 0.460 102.862 0.579
201706 0.305 103.349 0.382
201709 0.573 104.136 0.712
201712 1.235 104.011 1.537
201803 0.539 105.290 0.663
201806 0.569 106.317 0.693
201809 0.850 106.507 1.033
201812 1.222 105.998 1.492
201903 0.468 107.251 0.565
201906 0.524 108.070 0.628
201909 0.948 108.329 1.133
201912 1.594 108.420 1.903
202003 0.650 108.902 0.772
202006 0.844 108.767 1.004
202009 1.089 109.815 1.283
202012 2.061 109.897 2.427
202103 1.283 111.754 1.486
202106 1.132 114.631 1.278
202109 1.021 115.734 1.142
202112 2.673 117.630 2.941
202203 1.564 121.301 1.669
202206 1.278 125.017 1.323
202209 1.293 125.227 1.336
202212 1.894 125.222 1.957
202303 1.618 127.348 1.644
202306 1.540 128.729 1.548
202309 1.240 129.860 1.236
202312 2.408 129.419 2.408

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Apple  (NAS:AAPL) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

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.

Apple's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=182.52/4.68
=39.00

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Apple was 55.56. The lowest was 17.54. And the median was 29.02.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Apple Cyclically Adjusted FCF per Share Related Terms

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


Apple (NAS:AAPL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Apple Inc (NAS:AAPL) » Definitions » Cyclically Adjusted FCF per Share
Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Executives
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Katherine L. Adams officer: SVP, General Counsel APPLE INC., 1 INFINITE LOOP, CUPERTINO CA 95014
Luca Maestri officer: Senior Vice President, CFO 1 INFINITE LOOP, CUPERTINO CA 95014
Jeffrey E Williams officer: COO ONE INFINITE LOOP, CUPERTINO CA 95014
Deirdre O'brien officer: Senior Vice President ONE APPLE PARK WAY, CUPERTINO CA 95014
Timothy D Cook director, officer: Chief Executive Officer C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Arthur D Levinson director C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990
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Monica C Lozano director
Angela J Ahrendts officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
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Craig Federighi officer: Senior Vice President 807 11TH AVENUE, SUNNYVALE CA 94089
Daniel J. Riccio officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Philip W Schiller officer: Senior Vice President C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Susan Wagner director C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022