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The Timken Co (The Timken Co) Cyclically Adjusted Price-to-FCF : 20.00 (As of Apr. 27, 2024)


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What is The Timken Co Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), The Timken Co's current share price is $84.98. The Timken Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $4.25. The Timken Co's Cyclically Adjusted Price-to-FCF for today is 20.00.

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

TKR' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.61   Med: 16.21   Max: 24.18
Current: 19.97

During the past years, The Timken Co's highest Cyclically Adjusted Price-to-FCF was 24.18. The lowest was 8.61. And the median was 16.21.

TKR's Cyclically Adjusted Price-to-FCF is ranked better than
69.88% of 1016 companies
in the Industrial Products industry
Industry Median: 32.505 vs TKR: 19.97

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.

The Timken Co's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $1.063. 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 $4.25 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Timken Co Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Timken Co'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.

The Timken Co Cyclically Adjusted Price-to-FCF Chart

The Timken Co 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 18.22 22.16 17.11 17.56 18.87

The Timken Co 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 17.56 19.10 21.70 16.90 18.87

Competitive Comparison of The Timken Co's Cyclically Adjusted Price-to-FCF

For the Tools & Accessories subindustry, The Timken Co'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.


The Timken Co's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, The Timken Co's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



The Timken Co 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.

The Timken Co's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=84.98/4.25
=20.00

* 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.

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

For example, The Timken Co'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)
=1.063/129.4194*129.4194
=1.063

Current CPI (Dec. 2023) = 129.4194.

The Timken Co Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.227 99.695 0.295
201406 0.507 100.560 0.653
201409 0.454 100.428 0.585
201412 0.801 99.070 1.046
201503 -0.031 99.621 -0.040
201506 0.751 100.684 0.965
201509 1.417 100.392 1.827
201512 1.105 99.792 1.433
201603 0.303 100.470 0.390
201606 1.630 101.688 2.075
201609 0.516 101.861 0.656
201612 0.918 101.863 1.166
201703 0.347 102.862 0.437
201706 0.597 103.349 0.748
201709 0.074 104.136 0.092
201712 0.655 104.011 0.815
201803 -0.786 105.290 -0.966
201806 1.023 106.317 1.245
201809 1.454 106.507 1.767
201812 1.133 105.998 1.383
201903 0.469 107.251 0.566
201906 1.743 108.070 2.087
201909 1.321 108.329 1.578
201912 1.790 108.420 2.137
202003 0.320 108.902 0.380
202006 2.942 108.767 3.501
202009 1.631 109.815 1.922
202012 1.094 109.897 1.288
202103 0.030 111.754 0.035
202106 1.502 114.631 1.696
202109 0.814 115.734 0.910
202112 0.758 117.630 0.834
202203 -0.470 121.301 -0.501
202206 0.504 125.017 0.522
202209 1.325 125.227 1.369
202212 2.520 125.222 2.604
202303 0.503 127.348 0.511
202306 1.302 128.729 1.309
202309 2.107 129.860 2.100
202312 1.063 129.419 1.063

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.


The Timken Co  (NYSE:TKR) 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.


The Timken Co Cyclically Adjusted Price-to-FCF Related Terms

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


The Timken Co (The Timken Co) Business Description

Industry
Traded in Other Exchanges
Address
4500 Mount Pleasant Street North West, North Canton, OH, USA, 44720-5450
The Timken Company is a manufacturer of bearings, gear belts, and chain-related products. The company sells its portfolio of bearings, including tapered, spherical and cylindrical roller bearings, and thrust and ball bearings, through a network of authorised dealers to end users or directly to original equipment manufacturers. End-market sectors include general industrial, automotive, rail, energy, heavy truck, defense, agriculture, metals, mining, civil aerospace, construction, pulp and paper, and cement industries. Its segments are Mobile Industries and Process industries. Timken generates its revenue in the United States of America.
Executives
Philip D. Fracassa officer: CFO 1835 DUEBER AVENUE SW, CANTON OH 44706-0928
Christopher A Coughlin officer: President-proc ind & supp chn 1835 DUEBER AVE SW, CANTON OH 44706
Timken John M Jr director 200 MARKET AVE N STE 210, CANTON OH 44702
Hansal N. Patel officer: VP, GC, and Secretary 4500 MOUNT PLEASANT ST. NW, NORTH CANTON OH 44720
Richard G Kyle officer: President-mob ind & aerospace 1835 DUEBER AVE SW, CANTON OH 44706
Jacqueline F Woods director
Natasha Pollock officer: VP - Human Resources 4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Landin Bo Hans Olof officer: Group Vice President 4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Timken Ward J Jr director, officer: Chairman of the Board 200 MARKET AVE N STE 210, CANTON OH 44702
Ronald J Myers officer: VP - Human Resources 4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Sarah C Lauber director 833 EAST MICHIGAN STREET, SUITE 900, MILWAUKEE WI 53202
Shelly Marie Chadwick officer: Chief Accounting Officer 6070 PARKLAND BLVD, MAYFIELD HTS. OH 44124
Karl Andreas Roellgen officer: VP - Europe, Asia and Africa 4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Frank C Sullivan director
Elizabeth Ann Harrell director 4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720