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Shell (XAMS:SHELL) Cyclically Adjusted Price-to-FCF : 12.56 (As of Apr. 29, 2024)


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What is Shell Cyclically Adjusted Price-to-FCF?

As of today (2024-04-29), Shell's current share price is €34.045. Shell's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was €2.71. Shell's Cyclically Adjusted Price-to-FCF for today is 12.56.

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

XAMS:SHELL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 7.53   Med: 25.4   Max: 46.83
Current: 12.39

During the past years, Shell's highest Cyclically Adjusted Price-to-FCF was 46.83. The lowest was 7.53. And the median was 25.40.

XAMS:SHELL's Cyclically Adjusted Price-to-FCF is ranked better than
56.38% of 392 companies
in the Oil & Gas industry
Industry Median: 14.585 vs XAMS:SHELL: 12.39

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.

Shell's adjusted free cash flow per share data for the three months ended in Dec. 2023 was €0.776. 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 €2.71 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Shell Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Shell'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.

Shell Cyclically Adjusted Price-to-FCF Chart

Shell 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 20.74 10.31 11.27 12.16 10.98

Shell 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 12.16 11.66 11.18 12.01 10.98

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

For the Oil & Gas Integrated subindustry, Shell'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.


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

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

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



Shell 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=34.045/2.71
=12.56

* 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.

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

For example, Shell'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)
=0.776/130.0000*130.0000
=0.776

Current CPI (Dec. 2023) = 130.0000.

Shell Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.785 99.300 1.028
201406 0.086 99.800 0.112
201409 0.616 100.000 0.801
201412 0.100 99.900 0.130
201503 0.129 99.600 0.168
201506 -0.022 100.100 -0.029
201509 0.671 100.200 0.871
201512 -0.268 100.400 -0.347
201603 -0.579 100.400 -0.750
201606 -0.387 101.000 -0.498
201609 0.353 101.500 0.452
201612 0.401 102.200 0.510
201703 0.592 102.700 0.749
201706 0.604 103.500 0.759
201709 0.258 104.300 0.322
201712 0.143 105.000 0.177
201803 0.453 105.100 0.560
201806 0.432 105.900 0.530
201809 0.646 106.600 0.788
201812 1.577 107.100 1.914
201903 0.378 107.000 0.459
201906 0.638 107.900 0.769
201909 0.705 108.400 0.845
201912 0.402 108.500 0.482
202003 1.225 108.600 1.466
202006 -0.100 108.800 -0.119
202009 0.730 109.200 0.869
202012 0.114 109.400 0.135
202103 0.473 109.700 0.561
202106 0.888 111.400 1.036
202109 1.244 112.400 1.439
202112 0.221 114.700 0.250
202203 1.254 116.500 1.399
202206 1.507 120.500 1.626
202209 1.000 122.300 1.063
202212 2.118 125.300 2.197
202303 1.070 126.800 1.097
202306 1.416 129.400 1.423
202309 0.984 130.100 0.983
202312 0.776 130.000 0.776

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.


Shell  (XAMS:SHELL) 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.


Shell Cyclically Adjusted Price-to-FCF Related Terms

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


Shell (XAMS:SHELL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Shell PLC (XAMS:SHELL) » Definitions » Cyclically Adjusted Price-to-FCF
Address
Shell Centre, London, GBR, SE1 7NA
Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.

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