The historical rank and industry rank for Microsoft's Cyclically Adjusted Price-to-FCF or its related term are showing as below:
MSFT'
s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 13.66 Med: 31.61 Max: 71.78
Current: 62.66
During the past years, Microsoft's highest Cyclically Adjusted Price-to-FCF was 71.78. The lowest was 13.66. And the median was 31.61.
MSFT's Cyclically Adjusted Price-to-FCF is ranked worse than 73.35% of 668
companies
in the Software industry
Industry Median: 28.49
vs MSFT: 62.66
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.
Microsoft's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $2.806. 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 $6.49 for the trailing ten years ended in Mar. 2024.
Shiller PE for Stocks: The True Measure of Stock Valuation
Microsoft Cyclically Adjusted Price-to-FCF Historical Data
The historical data trend for Microsoft'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.
Competitive Comparison of Microsoft's Cyclically Adjusted Price-to-FCF
For the Software - Infrastructure subindustry, Microsoft'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.
Microsoft's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry
For the Software industry and Technology sector, Microsoft's Cyclically Adjusted Price-to-FCF distribution charts can be found below:
* The bar in red indicates where Microsoft's Cyclically Adjusted Price-to-FCF falls into.
Microsoft 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.
Microsoft's Cyclically Adjusted Price-to-FCF for today is calculated as
* 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.
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.
Microsoft (NAS:MSFT) 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.
Microsoft Cyclically Adjusted Price-to-FCF Related Terms
Thank you for viewing the detailed overview of Microsoft's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
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