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TORM (TRMD) Cyclically Adjusted Price-to-FCF : 12.66 (As of May. 16, 2024)


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What is TORM Cyclically Adjusted Price-to-FCF?

As of today (2024-05-16), TORM's current share price is $37.97. TORM's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $3.00. TORM's Cyclically Adjusted Price-to-FCF for today is 12.66.

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

TRMD' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 0.75   Med: 2.98   Max: 14.29
Current: 12.99

During the past years, TORM's highest Cyclically Adjusted Price-to-FCF was 14.29. The lowest was 0.75. And the median was 2.98.

TRMD's Cyclically Adjusted Price-to-FCF is ranked better than
54.04% of 396 companies
in the Oil & Gas industry
Industry Median: 14.195 vs TRMD: 12.99

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.

TORM's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $-0.595. 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 $3.00 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


TORM Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for TORM'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.

TORM Cyclically Adjusted Price-to-FCF Chart

TORM 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 - 0.78 1.01 3.69 11.92

TORM Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 4.08 7.49 6.34 11.92 11.65

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

For the Oil & Gas Midstream subindustry, TORM'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.


TORM's Cyclically Adjusted Price-to-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, TORM's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



TORM 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=37.97/3
=12.66

* 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.

TORM's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, TORM's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-0.595/131.6000*131.6000
=-0.595

Current CPI (Mar. 2024) = 131.6000.

TORM Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 7.900 99.800 10.417
201409 -0.472 100.000 -0.621
201412 19.630 99.900 25.859
201503 -0.295 99.600 -0.390
201506 0.661 100.100 0.869
201509 0.783 100.200 1.028
201512 -1.500 100.400 -1.966
201603 0.108 100.400 0.142
201606 0.392 101.000 0.511
201609 0.329 101.500 0.427
201612 0.001 102.200 0.001
201703 0.152 102.700 0.195
201706 0.418 103.500 0.531
201709 -1.315 104.300 -1.659
201712 0.176 105.000 0.221
201803 -0.909 105.100 -1.138
201806 -0.290 105.900 -0.360
201809 0.022 106.600 0.027
201812 -1.066 107.100 -1.310
201903 0.398 107.000 0.490
201906 -0.558 107.900 -0.681
201909 -1.697 108.400 -2.060
201912 -1.024 108.500 -1.242
202003 -0.250 108.600 -0.303
202006 0.882 108.800 1.067
202009 0.454 109.200 0.547
202012 -0.239 109.400 -0.287
202103 -0.419 109.700 -0.503
202106 -2.033 111.400 -2.402
202109 -0.620 112.400 -0.726
202112 -0.424 114.700 -0.486
202203 -0.335 116.500 -0.378
202206 0.717 120.500 0.783
202209 1.433 122.300 1.542
202212 2.770 125.300 2.909
202303 -0.005 126.800 -0.005
202306 0.852 129.400 0.866
202309 2.045 130.100 2.069
202312 0.485 130.500 0.489
202403 -0.595 131.600 -0.595

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.


TORM  (NAS:TRMD) 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.


TORM Cyclically Adjusted Price-to-FCF Related Terms

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


TORM (TRMD) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » TORM PLC (NAS:TRMD) » Definitions » Cyclically Adjusted Price-to-FCF
Address
20 Street Dunstan's Hill, OFFICE 105, London, GBR, EC3R 8HL
TORM PLC operates as a shipping company. The company owns and operates product tankers. It is primarily engaged in the transportation of refined oil products The company transports clean petroleum products including gasoline, jet fuel, naphtha, and diesel oil, as well as other clean products. Its segments include the Tanker segment, and Marine Exhaust segment.