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VeriSign (BUE:VRSN) Cyclically Adjusted FCF per Share : ARS1,229.98 (As of Mar. 2024)


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What is VeriSign 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.

VeriSign's adjusted free cash flow per share for the three months ended in Mar. 2024 was ARS2,116.687. 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 ARS1,229.98 for the trailing ten years ended in Mar. 2024.

During the past 12 months, VeriSign's average Cyclically Adjusted FCF Growth Rate was 7.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 14.00% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 14.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 14.70% 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 VeriSign was 18.70% per year. The lowest was 11.40% per year. And the median was 14.90% per year.

As of today (2024-05-14), VeriSign's current stock price is ARS30663.00. VeriSign's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was ARS1,229.98. VeriSign's Cyclically Adjusted Price-to-FCF of today is 24.93.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of VeriSign was 58.57. The lowest was 24.61. And the median was 34.75.


VeriSign Cyclically Adjusted FCF per Share Historical Data

The historical data trend for VeriSign'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.

VeriSign Cyclically Adjusted FCF per Share Chart

VeriSign 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 - 105.36 177.82 327.87 1,071.37

VeriSign Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 399.58 540.57 918.37 1,071.37 1,229.98

Competitive Comparison of VeriSign's Cyclically Adjusted FCF per Share

For the Software - Infrastructure subindustry, VeriSign'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.


VeriSign's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

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

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



VeriSign 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, VeriSign'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)
=2116.687/129.4194*129.4194
=2,116.687

Current CPI (Mar. 2024) = 129.4194.

VeriSign Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 6.541 100.560 8.418
201409 9.535 100.428 12.288
201412 10.149 99.070 13.258
201503 7.883 99.621 10.241
201506 11.327 100.684 14.560
201509 10.604 100.392 13.670
201512 18.927 99.792 24.546
201603 15.823 100.470 20.382
201606 17.233 101.688 21.933
201609 2.524 101.861 3.207
201612 25.059 101.863 31.838
201703 17.160 102.862 21.590
201706 22.793 103.349 28.543
201709 21.614 104.136 26.862
201712 29.250 104.011 36.395
201803 13.431 105.290 16.509
201806 38.627 106.317 47.021
201809 53.134 106.507 64.565
201812 65.558 105.998 80.044
201903 57.895 107.251 69.862
201906 57.566 108.070 68.939
201909 92.830 108.329 110.903
201912 93.886 108.420 112.070
202003 89.888 108.902 106.824
202006 121.127 108.767 144.126
202009 80.522 109.815 94.897
202012 134.635 109.897 158.552
202103 152.333 111.754 176.412
202106 105.171 114.631 118.739
202109 214.189 115.734 239.516
202112 174.940 117.630 192.474
202203 195.178 121.301 208.241
202206 153.399 125.017 158.801
202209 331.223 125.227 342.313
202212 331.184 125.222 342.286
202303 476.566 127.348 484.318
202306 320.308 128.729 322.027
202309 736.254 129.860 733.759
202312 705.012 129.419 705.012
202403 2,116.687 129.419 2,116.687

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


VeriSign  (BUE:VRSN) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=30663.00/1229.98
=24.93

* 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 VeriSign was 58.57. The lowest was 24.61. And the median was 34.75.


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.


VeriSign Cyclically Adjusted FCF per Share Related Terms

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


VeriSign (BUE:VRSN) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » VeriSign Inc (BUE:VRSN) » Definitions » Cyclically Adjusted FCF per Share
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Address
12061 Bluemont Way, Reston, VA, USA, 20190
Verisign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains. The company operates critical internet infrastructure to support the domain name system, including operating two of the world's 13 root servers that are used to route internet traffic. In 2018, the firm sold off its Security Services business, signalling a renewed focus on the core registry business.

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