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Software AG (FRA:SOW) Cyclically Adjusted FCF per Share : €2.03 (As of Sep. 2023)


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What is Software AG 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.

Software AG's adjusted free cash flow per share for the three months ended in Sep. 2023 was €0.155. 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 €2.03 for the trailing ten years ended in Sep. 2023.

During the past 12 months, Software AG'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 -3.30% 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 Software AG was -2.20% per year. The lowest was -3.30% per year. And the median was -2.75% per year.

As of today (2024-04-29), Software AG's current stock price is €37.46. Software AG's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 was €2.03. Software AG's Cyclically Adjusted Price-to-FCF of today is 18.45.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Software AG was 19.68. The lowest was 8.89. And the median was 15.35.


Software AG Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Software AG'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.

Software AG Cyclically Adjusted FCF per Share Chart

Software AG Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.30 2.31 2.16 2.15 2.09

Software AG Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 2.16 2.09 2.09 2.04 2.03

Competitive Comparison of Software AG's Cyclically Adjusted FCF per Share

For the Software - Infrastructure subindustry, Software AG'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.


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

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

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



Software AG 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, Software AG'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)
=0.155/124.1946*124.1946
=0.155

Current CPI (Sep. 2023) = 124.1946.

Software AG Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 0.649 99.356 0.811
201403 0.582 99.543 0.726
201406 0.249 99.543 0.311
201409 0.246 99.823 0.306
201412 0.588 99.543 0.734
201503 0.760 99.717 0.947
201506 0.580 100.417 0.717
201509 0.317 100.417 0.392
201512 0.549 99.717 0.684
201603 0.787 100.017 0.977
201606 0.724 100.717 0.893
201609 0.435 101.017 0.535
201612 0.555 101.217 0.681
201703 0.567 101.417 0.694
201706 0.598 102.117 0.727
201709 0.481 102.717 0.582
201712 0.549 102.617 0.664
201803 0.808 102.917 0.975
201806 0.420 104.017 0.501
201809 0.494 104.718 0.586
201812 0.777 104.217 0.926
201903 0.777 104.217 0.926
201906 0.378 105.718 0.444
201909 0.391 106.018 0.458
201912 0.621 105.818 0.729
202003 0.784 105.718 0.921
202006 0.317 106.618 0.369
202009 0.108 105.818 0.127
202012 0.183 105.518 0.215
202103 0.618 107.518 0.714
202106 0.303 108.486 0.347
202109 0.238 109.435 0.270
202112 0.262 110.384 0.295
202203 0.372 113.968 0.405
202206 -0.314 115.760 -0.337
202209 0.087 118.818 0.091
202212 -0.097 119.345 -0.101
202303 0.323 122.402 0.328
202306 -0.443 123.140 -0.447
202309 0.155 124.195 0.155

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


Software AG  (FRA:SOW) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=37.46/2.03
=18.45

* 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 Software AG was 19.68. The lowest was 8.89. And the median was 15.35.


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.


Software AG Cyclically Adjusted FCF per Share Related Terms

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


Software AG (FRA:SOW) Business Description

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Address
Uhlandstrasse 12, Darmstadt, HE, DEU, 64297
Software AG is a Germany-based provider of software solutions for the banking, communication and media, local and federal government, energy, insurance, transportation, retail, and manufacturing end markets. Its services include business process management, portfolio management, risk and compliance management, operational intelligence, and streaming analytics, many of which are delivered via cloud-based software applications. The firm has operations in Germany; the USA and other countries.

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