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Great-West Lifeco (LTS:0AH3) Cyclically Adjusted Price-to-FCF : 5.55 (As of Apr. 27, 2024)


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What is Great-West Lifeco Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Great-West Lifeco's current share price is C$39.28. Great-West Lifeco's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was C$7.08. Great-West Lifeco's Cyclically Adjusted Price-to-FCF for today is 5.55.

The historical rank and industry rank for Great-West Lifeco's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

LTS:0AH3' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 3.14   Med: 5.6   Max: 7.29
Current: 5.12

During the past years, Great-West Lifeco's highest Cyclically Adjusted Price-to-FCF was 7.29. The lowest was 3.14. And the median was 5.60.

LTS:0AH3's Cyclically Adjusted Price-to-FCF is ranked better than
74.69% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs LTS:0AH3: 5.12

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.

Great-West Lifeco's adjusted free cash flow per share data for the three months ended in Dec. 2023 was C$5.499. 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 C$7.08 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Great-West Lifeco Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Great-West Lifeco'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.

Great-West Lifeco Cyclically Adjusted Price-to-FCF Chart

Great-West Lifeco 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 5.32 4.59 5.09 4.05 5.55

Great-West Lifeco Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 4.05 4.68 5.06 5.17 5.55

Competitive Comparison of Great-West Lifeco's Cyclically Adjusted Price-to-FCF

For the Insurance - Life subindustry, Great-West Lifeco'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.


Great-West Lifeco's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Great-West Lifeco's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Great-West Lifeco 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.

Great-West Lifeco's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=39.28/7.08
=5.55

* 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.

Great-West Lifeco's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Great-West Lifeco'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)
=5.499/125.4675*125.4675
=5.499

Current CPI (Dec. 2023) = 125.4675.

Great-West Lifeco Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.272 98.604 1.619
201406 1.381 99.473 1.742
201409 2.077 99.394 2.622
201412 0.713 98.367 0.909
201503 1.093 99.789 1.374
201506 1.404 100.500 1.753
201509 1.569 100.421 1.960
201512 1.068 99.947 1.341
201603 1.373 101.054 1.705
201606 1.786 102.002 2.197
201609 1.741 101.765 2.147
201612 1.406 101.449 1.739
201703 1.492 102.634 1.824
201706 1.303 103.029 1.587
201709 1.716 103.345 2.083
201712 2.310 103.345 2.804
201803 1.171 105.004 1.399
201806 1.171 105.557 1.392
201809 2.639 105.636 3.134
201812 1.585 105.399 1.887
201903 0.819 106.979 0.961
201906 2.914 107.690 3.395
201909 1.368 107.611 1.595
201912 1.389 107.769 1.617
202003 2.080 107.927 2.418
202006 1.572 108.401 1.819
202009 4.663 108.164 5.409
202012 2.043 108.559 2.361
202103 1.931 110.298 2.197
202106 1.141 111.720 1.281
202109 6.101 112.905 6.780
202112 1.961 113.774 2.163
202203 1.543 117.646 1.646
202206 2.600 120.806 2.700
202209 1.681 120.648 1.748
202212 -1.780 120.964 -1.846
202303 -1.108 122.702 -1.133
202306 0.672 124.203 0.679
202309 0.504 125.230 0.505
202312 5.499 125.468 5.499

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.


Great-West Lifeco  (LTS:0AH3) 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.


Great-West Lifeco Cyclically Adjusted Price-to-FCF Related Terms

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


Great-West Lifeco (LTS:0AH3) Business Description

Address
100 Osborne Street North, Winnipeg, MB, CAN, R3C 1V3
Great-West Lifeco provides life insurance, health insurance, retirement products, asset management, recordkeeping services, and reinsurance products in Canada, the United States, and Europe. The Canada business contributes approximately 35% of adjusted earnings and has leading market positions in group insurance, group retirement, and individual insurance. The company operates the second-largest recordkeeping business under the Empower brand in the United States, with an earnings contribution from the country approximating 20%. Great-West Lifeco also offers various products across Europe markets with a strong presence in the U.K., Ireland, and Germany. The Europe segment contributes around 28% of adjusted earnings and the reinsurance business accounts for around 17% of adjusted earnings.

Great-West Lifeco (LTS:0AH3) Headlines

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