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Choice Hotels International (Choice Hotels International) Cyclically Adjusted FCF per Share : $3.97 (As of Dec. 2023)


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What is Choice Hotels International 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.

Choice Hotels International's adjusted free cash flow per share for the three months ended in Dec. 2023 was $0.289. 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 $3.97 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Choice Hotels International's average Cyclically Adjusted FCF Growth Rate was 5.60% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 11.80% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 8.60% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 6.80% 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 Choice Hotels International was 12.90% per year. The lowest was 2.30% per year. And the median was 7.60% per year.

As of today (2024-04-27), Choice Hotels International's current stock price is $119.05. Choice Hotels International's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $3.97. Choice Hotels International's Cyclically Adjusted Price-to-FCF of today is 29.99.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Choice Hotels International was 48.62. The lowest was 18.54. And the median was 29.45.


Choice Hotels International Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Choice Hotels International'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.

Choice Hotels International Cyclically Adjusted FCF per Share Chart

Choice Hotels International 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 2.91 2.84 3.34 3.76 3.97

Choice Hotels International 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 3.76 3.83 4.00 4.04 3.97

Competitive Comparison of Choice Hotels International's Cyclically Adjusted FCF per Share

For the Lodging subindustry, Choice Hotels International'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.


Choice Hotels International's Cyclically Adjusted Price-to-FCF Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Choice Hotels International 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, Choice Hotels International'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)
=0.289/129.4194*129.4194
=0.289

Current CPI (Dec. 2023) = 129.4194.

Choice Hotels International Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.039 99.695 0.051
201406 0.964 100.560 1.241
201409 1.163 100.428 1.499
201412 0.683 99.070 0.892
201503 -0.393 99.621 -0.511
201506 0.878 100.684 1.129
201509 0.941 100.392 1.213
201512 0.967 99.792 1.254
201603 -0.477 100.470 -0.614
201606 0.771 101.688 0.981
201609 0.961 101.861 1.221
201612 0.967 101.863 1.229
201703 0.309 102.862 0.389
201706 0.599 103.349 0.750
201709 1.662 104.136 2.066
201712 1.518 104.011 1.889
201803 -0.029 105.290 -0.036
201806 0.748 106.317 0.911
201809 1.243 106.507 1.510
201812 1.470 105.998 1.795
201903 0.041 107.251 0.049
201906 1.012 108.070 1.212
201909 1.486 108.329 1.775
201912 1.170 108.420 1.397
202003 -0.026 108.902 -0.031
202006 -0.345 108.767 -0.411
202009 1.024 109.815 1.207
202012 0.696 109.897 0.820
202103 -0.182 111.754 -0.211
202106 1.544 114.631 1.743
202109 2.146 115.734 2.400
202112 1.955 117.630 2.151
202203 0.641 121.301 0.684
202206 1.282 125.017 1.327
202209 1.597 125.227 1.650
202212 1.458 125.222 1.507
202303 -0.167 127.348 -0.170
202306 1.712 128.729 1.721
202309 1.689 129.860 1.683
202312 0.289 129.419 0.289

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


Choice Hotels International  (NYSE:CHH) 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.

Choice Hotels International's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=119.05/3.97
=29.99

* 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 Choice Hotels International was 48.62. The lowest was 18.54. And the median was 29.45.


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.


Choice Hotels International Cyclically Adjusted FCF per Share Related Terms

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


Choice Hotels International (Choice Hotels International) Business Description

Traded in Other Exchanges
Address
1 Choice Hotels Circle, Suite 400, Rockville, MD, USA, 20850
As of Dec. 31, 2022, Choice Hotels operated 628,000 rooms across 13 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands. Choice added its 13th brand with the launch of extended-stay brand Everhome in January 2020. Choice closed on its Radisson acquisition in August 2022, which will add around 70,000 rooms. Franchises are 99% of total revenue, and the United States represents 79% of total rooms in 2022.
Executives
Dominic Dragisich officer: Chief Financial Officer 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Noha Abdalla officer: Chief Marketing Officer 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
William L Jews director C/O FORTRESS INTERNATIONAL GROUP, INC., 7226 LEE DEFOREST DRIVE, SUITE 203, COLUMBIA, MD 21046
Scott E Oaksmith officer: Controller 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Patrick Cimerola officer: Senior Vice President 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Simone Wu officer: Senior Vice President 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Brian Bainum director 8171 MAPLE LAWN BLVD, SUITE 375, FULTON MD 20759
John P Tague director
David A Pepper officer: SVP, Franchise Development 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
John Bonds officer: Senior Vice President 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Sanchez Raul Ramirez officer: Chief Strat & Intl Op Officer 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Elizabeth A Redmond officer: Principal Accounting Officer 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Donna F Vieira director 300 CONTINENTAL DRIVE, NEWARK DE 19713
Patrick Pacious officer: Senior Vice President 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Liza Landsman director 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850