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Netgear (FRA:NGJ) Cyclically Adjusted FCF per Share : €1.59 (As of Dec. 2023)


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What is Netgear 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.

Netgear's adjusted free cash flow per share for the three months ended in Dec. 2023 was €1.674. 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 €1.59 for the trailing ten years ended in Dec. 2023.

During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was -4.70% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 2.40% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 2.70% 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 Netgear was 17.70% per year. The lowest was -7.40% per year. And the median was 4.60% per year.

As of today (2024-04-29), Netgear's current stock price is €13.80. Netgear's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was €1.59. Netgear's Cyclically Adjusted Price-to-FCF of today is 8.68.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Netgear was 24.89. The lowest was 6.93. And the median was 15.95.


Netgear Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Netgear'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.

Netgear Cyclically Adjusted FCF per Share Chart

Netgear 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 1.31 1.62 1.66 1.59 1.59

Netgear 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 1.59 1.45 1.38 1.41 1.59

Competitive Comparison of Netgear's Cyclically Adjusted FCF per Share

For the Communication Equipment subindustry, Netgear'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.


Netgear's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

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

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



Netgear 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, Netgear'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)
=1.674/129.4194*129.4194
=1.674

Current CPI (Dec. 2023) = 129.4194.

Netgear Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.048 99.695 0.062
201406 0.616 100.560 0.793
201409 0.446 100.428 0.575
201412 0.814 99.070 1.063
201503 -0.157 99.621 -0.204
201506 0.943 100.684 1.212
201509 2.045 100.392 2.636
201512 -0.204 99.792 -0.265
201603 1.619 100.470 2.085
201606 0.666 101.688 0.848
201609 1.085 101.861 1.379
201612 -0.512 101.863 -0.651
201703 0.160 102.862 0.201
201706 -0.231 103.349 -0.289
201709 2.445 104.136 3.039
201712 -0.383 104.011 -0.477
201803 1.346 105.290 1.654
201806 -0.523 106.317 -0.637
201809 0.797 106.507 0.968
201812 -4.653 105.998 -5.681
201903 -1.162 107.251 -1.402
201906 0.656 108.070 0.786
201909 -0.813 108.329 -0.971
201912 1.374 108.420 1.640
202003 0.848 108.902 1.008
202006 1.796 108.767 2.137
202009 1.116 109.815 1.315
202012 1.092 109.897 1.286
202103 0.321 111.754 0.372
202106 -0.216 114.631 -0.244
202109 -0.535 115.734 -0.598
202112 0.029 117.630 0.032
202203 0.010 121.301 0.011
202206 0.133 125.017 0.138
202209 -0.603 125.227 -0.623
202212 -0.214 125.222 -0.221
202303 0.265 127.348 0.269
202306 -1.112 128.729 -1.118
202309 0.763 129.860 0.760
202312 1.674 129.419 1.674

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


Netgear  (FRA:NGJ) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=13.80/1.59
=8.68

* 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 Netgear was 24.89. The lowest was 6.93. And the median was 15.95.


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.


Netgear Cyclically Adjusted FCF per Share Related Terms

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


Netgear (FRA:NGJ) Business Description

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350 East Plumeria Drive, San Jose, CA, USA, 95134
Netgear Inc is a provider of networking solutions. The reportable segments of the company are connected home, and Small and Medium Businesses (SMB). The Connected Home segment focuses on consumers and consists of high-performance, dependable, and easy-to-use 4G/5G mobile, Wi-Fi internet networking solutions and smart devices such as Orbi Voice smart speakers and Meural digital canvas; and SMB focused on small and medium-sized businesses and consists of business networking, storage, wireless LAN and security solutions that bring enterprise-class functionality to small and medium-sized businesses at an affordable price.

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