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Aflac (NYSE:AFL) Cyclically Adjusted FCF per Share

: $9.02 (As of Sep. 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.

Aflac's adjusted free cash flow per share for the three months ended in Sep. 2023 was $2.140. 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 $9.02 for the trailing ten years ended in Sep. 2023.

During the past 12 months, Aflac's average Cyclically Adjusted FCF Growth Rate was -6.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was -2.20% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 0.10% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 2.80% 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 Aflac was 17.70% per year. The lowest was -2.20% per year. And the median was 8.30% per year.

As of today (2024-02-23), Aflac's current stock price is $80.36. Aflac's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 was $9.02. Aflac's Cyclically Adjusted Price-to-FCF of today is 8.91.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Aflac was 9.46. The lowest was 2.69. And the median was 4.44.


Aflac Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Aflac'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.

Aflac Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.94 10.03 10.08 9.29 -

Aflac 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 9.29 9.03 8.93 9.02 -

Competitive Comparison

For the Insurance - Life subindustry, Aflac'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.


Aflac Cyclically Adjusted Price-to-FCF Distribution

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

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



Aflac 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, Aflac's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2023 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=2.14/129.8595*129.8595
=2.140

Current CPI (Sep. 2023) = 129.8595.

Aflac Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 3.639 98.326 4.806
201403 1.764 99.695 2.298
201406 1.666 100.560 2.151
201409 1.591 100.428 2.057
201412 2.197 99.070 2.880
201503 1.659 99.621 2.163
201506 1.892 100.684 2.440
201509 1.933 100.392 2.500
201512 2.346 99.792 3.053
201603 1.581 100.470 2.043
201606 1.838 101.688 2.347
201609 1.540 101.861 1.963
201612 2.280 101.863 2.907
201703 2.174 102.862 2.745
201706 1.763 103.349 2.215
201709 1.801 104.136 2.246
201712 1.939 104.011 2.421
201803 1.579 105.290 1.947
201806 2.017 106.317 2.464
201809 2.399 106.507 2.925
201812 1.771 105.998 2.170
201903 2.043 107.251 2.474
201906 1.086 108.070 1.305
201909 2.562 108.329 3.071
201912 1.617 108.420 1.937
202003 1.944 108.902 2.318
202006 1.649 108.767 1.969
202009 2.802 109.815 3.313
202012 1.928 109.897 2.278
202103 1.974 111.754 2.294
202106 1.413 114.631 1.601
202109 2.758 115.734 3.095
202112 1.313 117.630 1.450
202203 1.930 121.301 2.066
202206 0.793 125.017 0.824
202209 1.703 125.227 1.766
202212 1.659 125.222 1.720
202303 1.153 127.348 1.176
202306 0.629 128.729 0.635
202309 2.140 129.860 2.140

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


Aflac  (NYSE:AFL) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=80.36/9.02
=8.91

* 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 Aflac was 9.46. The lowest was 2.69. And the median was 4.44.


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.


Aflac Cyclically Adjusted FCF per Share Related Terms

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


Aflac (NYSE:AFL) Business Description

Industry
Traded in Other Exchanges
Address
1932 Wynnton Road, Columbus, GA, USA, 31999
Aflac Inc offers supplemental health insurance and life insurance in the two largest insurance markets in the world, the U.S. and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accident, disability, and long-term-care insurance. It markets its products through independent distributors, selling most of its policies directly to consumers at their places of work.
Executives
Steven Kent Beaver officer: SVP, CFO, Aflac US 1932 WYNNTON ROAD, COLUMBUS GA 31999
Masatoshi Koide officer: Deputy President, Aflac Japan 1932 WYNNTON RD, COLUMBUS GA 31999
June P Howard officer: Sr. Vice President 1932 WYNNTON RD, COLUMBUS GA 31999
Lake Charles D Ii officer: President AFLAC Japan AFLAC INC, 1932 WYNNTON RD, COLUMBUS GA 31999
Frederick John Crawford officer: EVP, Chief Financial Officer AFLAC INCORPORATED, COLUMBUS GA 31999
William P Bowers director 600 NORTH 18TH STREET, BIN 15N-8170, BIRMINGHAM AL 35203
Joseph L Moskowitz director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Simard Frederic Jean Guy officer: SVP, CFO, Aflac U.S. 1932 WYNNTON ROAD, COLUMBUS GA 31999
James Todd Daniels officer: Sr. Vice President 1932 WYNNTON ROAD, COLUMBUS GA 31999
Albert Riggieri officer: SVP, Corporate Actuary 1932 WYNNTON RD, COLUMBUS GA 31999
Virgil Raynard Miller officer: President, Aflac U.S. 1932 WYNNTON ROAD, COLUMBUS GA 31999
Barbara K Rimer director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Miwako Hosoda director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Bradley Eugene Dyslin officer: Executive Vice President 1932 WYNNTON ROAD, COLUMBUS GA 31999
Audrey B Tillman officer: Executive Vice President 1932 WYNNTON RD, COLUMBUS GA 31999