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LG (XKRX:003550) Cyclically Adjusted FCF per Share : ₩4,031.44 (As of Dec. 2023)


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What is LG 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.

LG's adjusted free cash flow per share for the three months ended in Dec. 2023 was ₩1,300.457. 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 ₩4,031.44 for the trailing ten years ended in Dec. 2023.

During the past 12 months, LG's average Cyclically Adjusted FCF Growth Rate was 8.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 13.40% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was -2.40% 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 LG was 13.40% per year. The lowest was -33.80% per year. And the median was -17.40% per year.

As of today (2024-04-29), LG's current stock price is ₩78900.00. LG's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was ₩4,031.44. LG's Cyclically Adjusted Price-to-FCF of today is 19.57.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of LG was 46.20. The lowest was 6.92. And the median was 21.08.


LG Cyclically Adjusted FCF per Share Historical Data

The historical data trend for LG'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.

LG Cyclically Adjusted FCF per Share Chart

LG 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 2,728.57 2,767.27 3,383.17 3,707.65 4,031.44

LG 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 3,707.65 3,929.23 4,022.98 4,104.77 4,031.44

Competitive Comparison of LG's Cyclically Adjusted FCF per Share

For the Consumer Electronics subindustry, LG'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.


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

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

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



LG 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, LG'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)
=1300.457/118.8477*118.8477
=1,300.457

Current CPI (Dec. 2023) = 118.8477.

LG Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -1,384.624 99.253 -1,657.979
201406 2,710.424 99.353 3,242.254
201409 -111.588 99.608 -133.142
201412 98.241 99.098 117.820
201503 1,441.375 99.720 1,717.851
201506 1,080.551 100.050 1,283.568
201509 98.603 100.110 117.059
201512 1,163.082 100.220 1,379.262
201603 462.360 100.560 546.444
201606 1,488.633 100.790 1,755.339
201609 211.684 101.460 247.961
201612 1,448.477 101.560 1,695.039
201703 1,231.061 102.850 1,422.545
201706 1,484.245 102.610 1,719.122
201709 -845.886 103.490 -971.414
201712 2,731.302 102.990 3,151.849
201803 -1,008.435 104.100 -1,151.299
201806 367.895 104.130 419.893
201809 472.173 105.650 531.156
201812 1,410.934 104.350 1,606.960
201903 1,419.322 104.490 1,614.347
201906 2,611.911 104.880 2,959.760
201909 -6.730 105.200 -7.603
201912 534.849 105.120 604.695
202003 1,440.032 105.540 1,621.608
202006 2,890.930 104.870 3,276.250
202009 -601.265 106.200 -672.872
202012 157.829 105.765 177.351
202103 109.045 107.357 120.716
202106 2,975.301 107.579 3,286.970
202109 1,545.245 108.759 1,688.582
202112 880.091 109.676 953.685
202203 -1,044.302 111.806 -1,110.076
202206 2,149.256 114.083 2,239.024
202209 115.177 114.831 119.205
202212 1,581.950 115.200 1,632.038
202303 1,117.254 116.550 1,139.284
202306 2,364.650 117.140 2,399.125
202309 -68.560 119.111 -68.408
202312 1,300.457 118.848 1,300.457

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


LG  (XKRX:003550) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=78900.00/4031.44
=19.57

* 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 LG was 46.20. The lowest was 6.92. And the median was 21.08.


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.


LG Cyclically Adjusted FCF per Share Related Terms

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


LG (XKRX:003550) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Hardware » LG Corp (XKRX:003550) » Definitions » Cyclically Adjusted FCF per Share
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Address
LG Twin Tower, 128, Yeoui-daero, Yeongdeungpo-gu, Seoul, KOR, 150-721
LG Corp is a South Korea-based holding company that is principally engaged in electronics, chemicals, telecommunications, and services businesses. The company operates business through a number of affiliated companies, including LG Electronics, LG Display, LG Innotek, LG Siltron, and others in the electronics industry; LG Chem, LG Household and Health Care, LG Life Sciences, and others in the chemicals industry; and LG N-Sys, LG CNS, LG Sports, and others in the telecommunication and services industry. The company has a business presence in North America, Europe, Middle East, Africa, the Commonwealth of Independent States (Kazakhstan, Russia, Turkmenistan, Ukraine), Asia-Pacific, and Latin America.

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