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Premier (Premier) Cyclically Adjusted Price-to-FCF : 4.15 (As of Apr. 29, 2024)


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What is Premier Cyclically Adjusted Price-to-FCF?

As of today (2024-04-29), Premier's current share price is $20.96. Premier's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $5.05. Premier's Cyclically Adjusted Price-to-FCF for today is 4.15.

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

PINC' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 3.18   Med: 4.38   Max: 5.45
Current: 4.15

During the past years, Premier's highest Cyclically Adjusted Price-to-FCF was 5.45. The lowest was 3.18. And the median was 4.38.

PINC's Cyclically Adjusted Price-to-FCF is ranked better than
88.55% of 166 companies
in the Healthcare Providers & Services industry
Industry Median: 24.24 vs PINC: 4.15

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.

Premier's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $-0.619. 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 $5.05 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Premier Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Premier'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.

Premier Cyclically Adjusted Price-to-FCF Chart

Premier Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 4.57 4.09

Premier 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 4.80 4.57 4.09 3.83 4.43

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

For the Health Information Services subindustry, Premier'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.


Premier's Cyclically Adjusted Price-to-FCF Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Premier's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Premier 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.

Premier's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=20.96/5.05
=4.15

* 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.

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

For example, Premier'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)
=-0.619/129.4194*129.4194
=-0.619

Current CPI (Dec. 2023) = 129.4194.

Premier Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 2.345 99.695 3.044
201406 1.964 100.560 2.528
201409 0.973 100.428 1.254
201412 2.523 99.070 3.296
201503 2.230 99.621 2.897
201506 2.367 100.684 3.043
201509 0.038 100.392 0.049
201512 2.171 99.792 2.816
201603 0.830 100.470 1.069
201606 0.541 101.688 0.689
201609 0.174 101.861 0.221
201612 0.560 101.863 0.711
201703 2.341 102.862 2.945
201706 1.897 103.349 2.376
201709 0.417 104.136 0.518
201712 0.786 104.011 0.978
201803 2.552 105.290 3.137
201806 0.823 106.317 1.002
201809 0.738 106.507 0.897
201812 0.942 105.998 1.150
201903 1.031 107.251 1.244
201906 1.836 108.070 2.199
201909 0.674 108.329 0.805
201912 1.502 108.420 1.793
202003 0.047 108.902 0.056
202006 0.548 108.767 0.652
202009 0.058 109.815 0.068
202012 0.533 109.897 0.628
202103 0.440 111.754 0.510
202106 1.557 114.631 1.758
202109 0.274 115.734 0.306
202112 0.986 117.630 1.085
202203 0.992 121.301 1.058
202206 0.694 125.017 0.718
202209 0.465 125.227 0.481
202212 0.857 125.222 0.886
202303 0.955 127.348 0.971
202306 0.746 128.729 0.750
202309 0.504 129.860 0.502
202312 -0.619 129.419 -0.619

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.


Premier  (NAS:PINC) 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.


Premier Cyclically Adjusted Price-to-FCF Related Terms

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


Premier (Premier) Business Description

Traded in Other Exchanges
N/A
Address
13034 Ballantyne Corporate Place, Charlotte, NC, USA, 28277
Premier Inc is a Charlotte, North Carolina-based national group purchasing organization providing primary supply chain services to large hospital systems and more recently to alternate outpatient locations as it expands its footprint. Through acquisitions, the company also offers a compliment of advisory services and consulting services along with software-as-a-service-based subscriptions. The company's revenue is all sourced domestically and is reported in two business segments: the core supply chain services (approximately 70% of fiscal 2019 revenue) and the consulting and technology platform of performance services (approximately 30%).
Executives
Andy Brailo officer: Chief Commercial Officer 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Andrea L. Frohning officer: Chief Human Resource Officer C/O DENTSLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Crystal Climer officer: Chief Accounting Officer PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Leigh Anderson officer: SVP, Chief Information Officer C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
David L Klatsky officer: General Counsel C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
David Alfred Hargraves officer: SVP, Supply Chain C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Craig S. Mckasson officer: Senior VP & CFO C/O PREMIER INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Jody R Davids director C/O PREMIER INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Lindsay A Powers officer: Sr. VP of People C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Stephen R. D'arcy director 20 BURTON HILLS BOULEVARD, SUITE 100, NASHVILLE TN 37215
William E Mayer director C/O LEE ENTERPRISES INC, 201 N. HARRISON ST., STE. 600, DAVENPORT IA 52801
Helen M Boudreau director 200 TECHNOLOGY SQUARE, 4TH FLOOR, CAMBRIDGE MA 02139
John T. Bigalke director C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Kelli L. Price officer: Sr. VP of People C/O PREMIER INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Susan D. Devore director, officer: President & CEO C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277