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Wipro (BOM:507685) Cyclically Adjusted Price-to-FCF : (As of Apr. 29, 2024)


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What is Wipro Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Wipro Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Wipro'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.

Wipro Cyclically Adjusted Price-to-FCF Chart

Wipro Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.30 14.84 27.15 36.62 20.80

Wipro Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 23.56 22.81 20.80 21.41 -

Competitive Comparison of Wipro's Cyclically Adjusted Price-to-FCF

For the Information Technology Services subindustry, Wipro'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.


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

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

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



Wipro 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.

Wipro's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 is calculated as:

For example, Wipro'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)
=0/151.4920*151.4920
=0.000

Current CPI (Sep. 2023) = 151.4920.

Wipro Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 0.000 91.425 0.000
201403 0.000 91.425 0.000
201406 2.800 94.103 4.508
201409 1.710 96.780 2.677
201412 2.404 96.780 3.763
201503 3.086 97.163 4.812
201506 2.834 99.841 4.300
201509 1.757 101.753 2.616
201512 3.210 102.901 4.726
201603 2.089 102.518 3.087
201606 1.485 105.961 2.123
201609 3.001 105.961 4.291
201612 3.297 105.196 4.748
201703 3.314 105.196 4.772
201706 3.919 107.109 5.543
201709 1.843 109.021 2.561
201712 3.751 109.404 5.194
201803 0.172 109.786 0.237
201806 4.020 111.317 5.471
201809 2.097 115.142 2.759
201812 4.832 115.142 6.357
201903 4.585 118.202 5.876
201906 3.866 120.880 4.845
201909 3.602 123.175 4.430
201912 4.263 126.235 5.116
202003 1.420 124.705 1.725
202006 6.585 127.000 7.855
202009 7.015 130.118 8.167
202012 6.830 130.889 7.905
202103 2.027 131.771 2.330
202106 5.277 134.084 5.962
202109 3.317 135.847 3.699
202112 4.459 138.161 4.889
202203 3.483 138.822 3.801
202206 -0.561 142.347 -0.597
202209 8.047 144.661 8.427
202212 7.369 145.763 7.659
202303 6.241 146.865 6.438
202306 6.304 150.280 6.355
202309 0.000 151.492 0.000

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.


Wipro  (BOM:507685) 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.


Wipro Cyclically Adjusted Price-to-FCF Related Terms

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Wipro (BOM:507685) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Wipro Ltd (BOM:507685) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
Sarjapur Road, Doddakannelli, Bangalore, KA, IND, 560 035
Wipro is a leading global IT services provider, with 175,000 employees. Based in Bengaluru, this India IT services firm leverages its offshore outsourcing model to derive over half of its revenue (57%) from North America. The company offers traditional IT services offerings: consulting, managed services, and cloud infrastructure services as well as business process outsourcing as a service.

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