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Walmart (NYSE:WMT) Cyclically Adjusted FCF per Share

: $2.26 (As of Jan. 2024)
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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.

Walmart's adjusted free cash flow per share for the three months ended in Jan. 2024 was $1.330. 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 $2.26 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Walmart's average Cyclically Adjusted FCF Growth Rate was 5.10% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 6.10% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 7.40% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 10.20% 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 Walmart was 97.20% per year. The lowest was 6.10% per year. And the median was 15.70% per year.

As of today (2024-02-27), Walmart's current stock price is $59.5758. Walmart's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $2.26. Walmart's Cyclically Adjusted Price-to-FCF of today is 26.36.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Walmart was 33.78. The lowest was 16.54. And the median was 23.10.


Walmart Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Walmart'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.

Walmart Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.68 1.89 2.04 2.15 2.26

Walmart Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted FCF per Share 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 Premium Member Only Premium Member Only Premium Member Only 2.15 2.16 2.24 2.22 2.26

Competitive Comparison

For the Discount Stores subindustry, Walmart'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.


Walmart Cyclically Adjusted Price-to-FCF Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Walmart 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, Walmart's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=1.33/129.4194*129.4194
=1.330

Current CPI (Jan. 2024) = 129.4194.

Walmart Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.388 100.023 0.502
201407 0.309 100.520 0.398
201410 0.045 100.176 0.058
201501 0.942 98.604 1.236
201504 0.231 99.824 0.299
201507 0.290 100.691 0.373
201510 0.179 100.346 0.231
201601 0.976 99.957 1.264
201604 0.421 100.947 0.540
201607 0.676 101.524 0.862
201610 0.216 101.988 0.274
201701 0.946 102.456 1.195
201704 0.371 103.167 0.465
201707 0.391 103.278 0.490
201710 0.358 104.070 0.445
201801 0.911 104.578 1.127
201804 0.376 105.708 0.460
201807 0.393 106.324 0.478
201810 0.395 106.695 0.479
201901 0.814 106.200 0.992
201904 0.157 107.818 0.188
201907 0.576 108.250 0.689
201910 0.054 108.577 0.064
202001 0.908 108.841 1.080
202004 0.616 108.173 0.737
202007 1.185 109.318 1.403
202010 0.123 109.861 0.145
202101 1.099 110.364 1.289
202104 0.076 112.673 0.087
202107 0.801 115.183 0.900
202110 0.036 116.696 0.040
202201 0.404 118.619 0.441
202204 -0.880 121.978 -0.934
202207 1.098 125.002 1.137
202210 0.232 125.734 0.239
202301 1.028 126.223 1.054
202304 0.025 127.992 0.025
202307 1.083 128.974 1.087
202310 -0.573 129.810 -0.571
202401 1.330 129.419 1.330

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


Walmart  (NYSE:WMT) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=59.5758/2.26
=26.36

* 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 Walmart was 33.78. The lowest was 16.54. And the median was 23.10.


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.


Walmart Cyclically Adjusted FCF per Share Related Terms

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


Walmart (NYSE:WMT) Business Description

Industry
Address
702 S.W. 8th Street, Bentonville, AR, USA, 72716
Walmart serves as the preeminent retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,700 stores in the United States (5,300 including Sam's Club) and over 10,000 stores globally. Walmart generated over $420 billion in domestic namesake sales last year, with Sam's Club contributing another $84 billion to the firm's top line. Internationally, Walmart generated $100 billion in sales. The company serves around 240 million customers globally each week.
Executives
John D Rainey officer: Executive Vice President C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Jim C Walton director, other: Director C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72712
S Robson Walton director, 10 percent owner, officer: Chairman of the Board C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72716-0105
Alice L Walton 10 percent owner 110 N.W. SECOND STREET, SUITE 300, BENTONVILLE AR 72712
C Douglas Mcmillon officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
John R. Furner officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Rachel L Brand officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
Christopher James Nicholas officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
David Chojnowski officer: Senior Vice President 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Daniel J Bartlett officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Randall L Stephenson director 208 S. AKARD ST., DALLAS TX 75202
Judith J Mckenna officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
M. Brett Biggs officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Marc E. Lore officer: Executive Vice President 443 GREENWICH STREET, PHA, NEW YORK NY 10013
Kathryn J. Mclay officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716