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Reckitt Benckiser Group (LSE:RKT) Cyclically Adjusted Price-to-FCF : 13.95 (As of Apr. 27, 2024)


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What is Reckitt Benckiser Group Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Reckitt Benckiser Group's current share price is £44.23. Reckitt Benckiser Group's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 was £3.17. Reckitt Benckiser Group's Cyclically Adjusted Price-to-FCF for today is 13.95.

The historical rank and industry rank for Reckitt Benckiser Group's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

LSE:RKT' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 13.15   Med: 25.71   Max: 35.85
Current: 13.72

During the past 13 years, Reckitt Benckiser Group's highest Cyclically Adjusted Price-to-FCF was 35.85. The lowest was 13.15. And the median was 25.71.

LSE:RKT's Cyclically Adjusted Price-to-FCF is ranked better than
70.16% of 697 companies
in the Consumer Packaged Goods industry
Industry Median: 23.47 vs LSE:RKT: 13.72

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.

Reckitt Benckiser Group's adjusted free cash flow per share data of for the fiscal year that ended in Dec23 was £3.045. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is £3.17 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Reckitt Benckiser Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Reckitt Benckiser Group'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.

Reckitt Benckiser Group Cyclically Adjusted Price-to-FCF Chart

Reckitt Benckiser Group 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 24.09 23.36 22.19 18.60 17.08

Reckitt Benckiser Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 22.19 - 18.60 - 17.08

Competitive Comparison of Reckitt Benckiser Group's Cyclically Adjusted Price-to-FCF

For the Household & Personal Products subindustry, Reckitt Benckiser Group'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.


Reckitt Benckiser Group's Cyclically Adjusted Price-to-FCF Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Reckitt Benckiser Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Reckitt Benckiser Group 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.

Reckitt Benckiser Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=44.23/3.17
=13.95

* 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.

Reckitt Benckiser Group's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Reckitt Benckiser Group's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=3.045/130.0000*130.0000
=3.045

Current CPI (Dec23) = 130.0000.

Reckitt Benckiser Group Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 2.621 99.900 3.411
201512 2.218 100.400 2.872
201612 2.845 102.200 3.619
201712 3.012 105.000 3.729
201812 2.944 107.100 3.573
201912 1.366 108.500 1.637
202012 4.248 109.400 5.048
202112 1.747 114.700 1.980
202212 2.723 125.300 2.825
202312 3.045 130.000 3.045

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.


Reckitt Benckiser Group  (LSE:RKT) 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.


Reckitt Benckiser Group Cyclically Adjusted Price-to-FCF Related Terms

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


Reckitt Benckiser Group (LSE:RKT) Business Description

Traded in Other Exchanges
Address
103-105 Bath Road, Slough, Berkshire, GBR, SL1 3UH
Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold the number-one or -two positions in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating around 35% of sales from emerging markets.