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The Hanover Insurance Group (BSP:THGI34) Cyclically Adjusted FCF per Share : R$39.79 (As of Dec. 2023)


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What is The Hanover Insurance Group Cyclically Adjusted FCF per Share?

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.

The Hanover Insurance Group's adjusted free cash flow per share for the three months ended in Dec. 2023 was R$5.944. 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 R$39.79 for the trailing ten years ended in Dec. 2023.

During the past 12 months, The Hanover Insurance Group's average Cyclically Adjusted FCF Growth Rate was 2.80% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 11.50% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 25.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 38.70% 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 The Hanover Insurance Group was 87.20% per year. The lowest was 10.90% per year. And the median was 32.00% per year.

As of today (2024-04-28), The Hanover Insurance Group's current stock price is R$269.73. The Hanover Insurance Group's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was R$39.79. The Hanover Insurance Group's Cyclically Adjusted Price-to-FCF of today is 6.78.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of The Hanover Insurance Group was 2796.50. The lowest was 5.82. And the median was 19.07.


The Hanover Insurance Group Cyclically Adjusted FCF per Share Historical Data

The historical data trend for The Hanover Insurance Group'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.

The Hanover Insurance Group Cyclically Adjusted FCF per Share Chart

The Hanover Insurance Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.69 31.84 40.98 46.87 39.79

The Hanover Insurance Group 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 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 46.87 50.42 57.70 44.50 39.79

Competitive Comparison of The Hanover Insurance Group's Cyclically Adjusted FCF per Share

For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group'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.


The Hanover Insurance Group's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

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

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



The Hanover Insurance Group 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, The Hanover Insurance Group'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)
=5.944/129.4194*129.4194
=5.944

Current CPI (Dec. 2023) = 129.4194.

The Hanover Insurance Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.552 99.695 2.015
201406 2.495 100.560 3.211
201409 6.238 100.428 8.039
201412 4.528 99.070 5.915
201503 2.800 99.621 3.638
201506 0.491 100.684 0.631
201509 10.662 100.392 13.745
201512 3.745 99.792 4.857
201603 3.213 100.470 4.139
201606 5.908 101.688 7.519
201609 12.196 101.861 15.496
201612 7.032 101.863 8.934
201703 1.819 102.862 2.289
201706 7.365 103.349 9.223
201709 10.234 104.136 12.719
201712 6.259 104.011 7.788
201803 1.061 105.290 1.304
201806 6.291 106.317 7.658
201809 13.456 106.507 16.351
201812 3.829 105.998 4.675
201903 1.552 107.251 1.873
201906 5.185 108.070 6.209
201909 13.814 108.329 16.503
201912 9.093 108.420 10.854
202003 2.131 108.902 2.532
202006 12.504 108.767 14.878
202009 22.488 109.815 26.503
202012 10.939 109.897 12.882
202103 10.652 111.754 12.336
202106 11.428 114.631 12.902
202109 20.672 115.734 23.116
202112 17.849 117.630 19.638
202203 13.454 121.301 14.354
202206 0.252 125.017 0.261
202209 22.594 125.227 23.351
202212 14.138 125.222 14.612
202303 1.068 127.348 1.085
202306 1.557 128.729 1.565
202309 15.172 129.860 15.121
202312 5.944 129.419 5.944

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


The Hanover Insurance Group  (BSP:THGI34) 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.

The Hanover Insurance Group's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=269.73/39.79
=6.78

* 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 The Hanover Insurance Group was 2796.50. The lowest was 5.82. And the median was 19.07.


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.


The Hanover Insurance Group Cyclically Adjusted FCF per Share Related Terms

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


The Hanover Insurance Group (BSP:THGI34) Business Description

Traded in Other Exchanges
Address
440 Lincoln Street, Worcester, MA, USA, 01653
The Hanover Insurance Group Inc is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States while conducting business internationally through a wholly owned subsidiary, Chaucer Holdings Limited, domiciled in the United Kingdom. The company conducts business operations through three operating segments: Commercial Lines, Personal Lines and Other. The company operates an investment portfolio that is primarily exposed to fixed-income securities.

The Hanover Insurance Group (BSP:THGI34) Headlines

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