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Dollarama (TSX:DOL) Cyclically Adjusted Price-to-FCF : 51.85 (As of Apr. 29, 2024)


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What is Dollarama Cyclically Adjusted Price-to-FCF?

As of today (2024-04-29), Dollarama's current share price is C$115.62. Dollarama's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was C$2.23. Dollarama's Cyclically Adjusted Price-to-FCF for today is 51.85.

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

TSX:DOL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 40.02   Med: 47.14   Max: 74.64
Current: 51.84

During the past years, Dollarama's highest Cyclically Adjusted Price-to-FCF was 74.64. The lowest was 40.02. And the median was 47.14.

TSX:DOL's Cyclically Adjusted Price-to-FCF is ranked worse than
88.1% of 126 companies
in the Retail - Defensive industry
Industry Median: 15.415 vs TSX:DOL: 51.84

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.

Dollarama's adjusted free cash flow per share data for the three months ended in Jan. 2024 was C$1.485. 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$2.23 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Dollarama Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Dollarama'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.

Dollarama Cyclically Adjusted Price-to-FCF Chart

Dollarama Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.04 43.70 43.57 44.43 44.24

Dollarama Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 44.43 44.06 42.77 44.97 44.24

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

For the Discount Stores subindustry, Dollarama'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.


Dollarama's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Dollarama's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Dollarama 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=115.62/2.23
=51.85

* 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.

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

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=1.485/125.4675*125.4675
=1.485

Current CPI (Jan. 2024) = 125.4675.

Dollarama Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 -0.002 98.920 -0.003
201407 0.223 99.315 0.282
201410 0.111 99.473 0.140
201501 0.349 98.209 0.446
201504 -0.050 99.710 -0.063
201507 0.265 100.579 0.331
201510 0.241 100.500 0.301
201601 0.475 100.184 0.595
201604 -0.029 101.370 -0.036
201607 0.357 101.844 0.440
201610 0.155 102.002 0.191
201701 0.467 102.318 0.573
201704 0.186 103.029 0.227
201707 0.438 103.029 0.533
201710 0.262 103.424 0.318
201801 0.594 104.056 0.716
201804 -0.014 105.320 -0.017
201807 0.581 106.110 0.687
201810 0.291 105.952 0.345
201901 0.691 105.557 0.821
201904 0.200 107.453 0.234
201907 0.478 108.243 0.554
201910 0.515 107.927 0.599
202001 0.675 108.085 0.784
202004 0.438 107.216 0.513
202007 0.793 108.401 0.918
202010 0.535 108.638 0.618
202101 0.542 109.192 0.623
202104 0.333 110.851 0.377
202107 0.722 112.431 0.806
202110 1.052 113.695 1.161
202201 1.201 114.801 1.313
202204 0.435 118.357 0.461
202207 0.366 120.964 0.380
202210 0.354 121.517 0.366
202301 1.304 121.596 1.346
202304 0.825 123.571 0.838
202307 1.256 124.914 1.262
202310 0.845 125.310 0.846
202401 1.485 125.468 1.485

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.


Dollarama  (TSX:DOL) 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.


Dollarama Cyclically Adjusted Price-to-FCF Related Terms

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


Dollarama (TSX:DOL) Business Description

Traded in Other Exchanges
Address
5805 Royalmount Avenue, Montreal, QC, CAN, H4P 0A1
Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items both in-store and online. General merchandise and consumer products jointly account for the majority of the company's product offerings. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns. All the stores are owned and operated by the company.