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LG (XKRX:003550) Cyclically Adjusted Price-to-FCF : 19.57 (As of Apr. 29, 2024)


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What is LG Cyclically Adjusted Price-to-FCF?

As of today (2024-04-29), LG's current share price is ₩78900.00. LG's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was ₩4,031.44. LG's Cyclically Adjusted Price-to-FCF for today is 19.57.

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

XKRX:003550' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.92   Med: 21.08   Max: 46.2
Current: 19.57

During the past years, LG's highest Cyclically Adjusted Price-to-FCF was 46.20. The lowest was 6.92. And the median was 21.08.

XKRX:003550's Cyclically Adjusted Price-to-FCF is ranked better than
65.42% of 960 companies
in the Hardware industry
Industry Median: 28.155 vs XKRX:003550: 19.57

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.

LG's adjusted free cash flow per share data for the three months ended in Dec. 2023 was ₩1,300.457. 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 ₩4,031.44 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


LG Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for LG'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.

LG Cyclically Adjusted Price-to-FCF Chart

LG 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 29.67 34.69 23.91 21.06 21.31

LG 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 21.06 21.07 21.87 20.42 21.31

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

For the Consumer Electronics subindustry, LG'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.


LG's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, LG's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



LG 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=78900.00/4031.44
=19.57

* 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.

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

For example, LG'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)
=1300.457/118.8477*118.8477
=1,300.457

Current CPI (Dec. 2023) = 118.8477.

LG Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -1,384.624 99.253 -1,657.979
201406 2,710.424 99.353 3,242.254
201409 -111.588 99.608 -133.142
201412 98.241 99.098 117.820
201503 1,441.375 99.720 1,717.851
201506 1,080.551 100.050 1,283.568
201509 98.603 100.110 117.059
201512 1,163.082 100.220 1,379.262
201603 462.360 100.560 546.444
201606 1,488.633 100.790 1,755.339
201609 211.684 101.460 247.961
201612 1,448.477 101.560 1,695.039
201703 1,231.061 102.850 1,422.545
201706 1,484.245 102.610 1,719.122
201709 -845.886 103.490 -971.414
201712 2,731.302 102.990 3,151.849
201803 -1,008.435 104.100 -1,151.299
201806 367.895 104.130 419.893
201809 472.173 105.650 531.156
201812 1,410.934 104.350 1,606.960
201903 1,419.322 104.490 1,614.347
201906 2,611.911 104.880 2,959.760
201909 -6.730 105.200 -7.603
201912 534.849 105.120 604.695
202003 1,440.032 105.540 1,621.608
202006 2,890.930 104.870 3,276.250
202009 -601.265 106.200 -672.872
202012 157.829 105.765 177.351
202103 109.045 107.357 120.716
202106 2,975.301 107.579 3,286.970
202109 1,545.245 108.759 1,688.582
202112 880.091 109.676 953.685
202203 -1,044.302 111.806 -1,110.076
202206 2,149.256 114.083 2,239.024
202209 115.177 114.831 119.205
202212 1,581.950 115.200 1,632.038
202303 1,117.254 116.550 1,139.284
202306 2,364.650 117.140 2,399.125
202309 -68.560 119.111 -68.408
202312 1,300.457 118.848 1,300.457

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.


LG  (XKRX:003550) 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.


LG Cyclically Adjusted Price-to-FCF Related Terms

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


LG (XKRX:003550) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » LG Corp (XKRX:003550) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
LG Twin Tower, 128, Yeoui-daero, Yeongdeungpo-gu, Seoul, KOR, 150-721
LG Corp is a South Korea-based holding company that is principally engaged in electronics, chemicals, telecommunications, and services businesses. The company operates business through a number of affiliated companies, including LG Electronics, LG Display, LG Innotek, LG Siltron, and others in the electronics industry; LG Chem, LG Household and Health Care, LG Life Sciences, and others in the chemicals industry; and LG N-Sys, LG CNS, LG Sports, and others in the telecommunication and services industry. The company has a business presence in North America, Europe, Middle East, Africa, the Commonwealth of Independent States (Kazakhstan, Russia, Turkmenistan, Ukraine), Asia-Pacific, and Latin America.

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