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A.O. Smith (A.O. Smith) Cyclically Adjusted Price-to-FCF : (As of Apr. 27, 2024)


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What is A.O. Smith Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


A.O. Smith Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for A.O. Smith's Cyclically Adjusted Price-to-FCF 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.

A.O. Smith Cyclically Adjusted Price-to-FCF Chart

A.O. Smith Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.96 34.86 42.13 24.61 30.84

A.O. Smith Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF 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 28.49 29.10 25.54 30.84 -

Competitive Comparison of A.O. Smith's Cyclically Adjusted Price-to-FCF

For the Specialty Industrial Machinery subindustry, A.O. Smith'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.


A.O. Smith's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, A.O. Smith's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



A.O. Smith Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

A.O. Smith's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, A.O. Smith's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.57/129.4194*129.4194
=0.570

Current CPI (Mar. 2024) = 129.4194.

A.O. Smith Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.288 100.560 0.371
201409 0.324 100.428 0.418
201412 0.444 99.070 0.580
201503 -0.085 99.621 -0.110
201506 0.253 100.684 0.325
201509 0.860 100.392 1.109
201512 0.536 99.792 0.695
201603 0.040 100.470 0.052
201606 0.623 101.688 0.793
201609 0.496 101.861 0.630
201612 0.915 101.863 1.163
201703 -0.161 102.862 -0.203
201706 0.373 103.349 0.467
201709 0.269 104.136 0.334
201712 0.854 104.011 1.063
201803 0.149 105.290 0.183
201806 0.624 106.317 0.760
201809 0.564 106.507 0.685
201812 0.779 105.998 0.951
201903 0.004 107.251 0.005
201906 0.634 108.070 0.759
201909 0.740 108.329 0.884
201912 0.987 108.420 1.178
202003 0.254 108.902 0.302
202006 0.698 108.767 0.831
202009 0.857 109.815 1.010
202012 1.299 109.897 1.530
202103 0.536 111.754 0.621
202106 0.482 114.631 0.544
202109 1.035 115.734 1.157
202112 1.464 117.630 1.611
202203 0.023 121.301 0.025
202206 0.128 125.017 0.133
202209 0.903 125.227 0.933
202212 1.027 125.222 1.061
202303 0.719 127.348 0.731
202306 0.837 128.729 0.841
202309 1.060 129.860 1.056
202312 1.348 129.419 1.348
202403 0.570 129.419 0.570

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


A.O. Smith  (NYSE:AOS) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


A.O. Smith Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of A.O. Smith's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


A.O. Smith (A.O. Smith) Business Description

Industry
Traded in Other Exchanges
Address
11270 West Park Place, P. O. Box 245008, Suite 170, Milwaukee, WI, USA, 53224-9508
A.O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, gas tankless, and electric water heaters. Supplementary products include water heating equipment, condensing and noncondensing boilers, and water system tanks. The company's two operating segments are by geographic region: North America (majority of total revenue) and the Rest of the World. A material portion of sales in North America derive from replacing existing products, and the company utilizes a wholesale distribution channel and multiple selling locations. The Rest of the World segment sells majorly in Asian countries and operates sales offices to expand distribution and market its product portfolio.
Executives
Mark D Smith director
Idelle K Wolf director
Robert J Heideman officer: Senior Vice President Corp Tec A. O. SMITH CORPORATE TECHNOLOGY CENTER, 12100 WEST PARK PLACE, MILWAUKEE WI 53224
Mark A Petrarca officer: Vice President - H.R. & P.A. A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
James F Stern officer: Exec VP, General Counsel & Sec A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Ajita G Rajendra officer: President, A. O. Smith Water P A. O. SMITH WATER PRODUCTS COMPANY, 500 LINDAHL PARKWAY, ASHLAND CITY TN 37015
Kevin J. Wheeler officer: Senior VP and President & GM A. O. SMITH CORPORATION, 500 TENNESSEE WALTZ PARKWAY, ASHLAND CITY TN 37015
Benjamin A Otchere officer: Vice President and Controller A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Michael M Larsen director ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Daniel L Kempken officer: Vice President and Controller A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Samuel M. Carver officer: SVP - Global Operations A. O. SMITH CORPORATION, 44 VANTAGE WAY, NASHVILLE TN 37228
Ronald D Brown director 2090 FLORENCE AVENUE, CINCINNATI OH 45206
Parag Kulkarni officer: SVP - Int'l; President India A. O. SMITH INDIA WATER PRODUCTS PRIVATE, #300, PHASE II, KIADB INDUSTRIAL AREA, KARNATAKA K7 562112
Earl E. Exum director A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Stephen D. O'brien officer: SVP; President, Lochinvar, LLC LOCHINVAR, LLC, 300 MADDOX SIMPSON PARKWAY, LEBANON TN 37090

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