Invensys (FRA:SBPD) Free Cash Flow per Share : €-0.30 (TTM As of Sep. 2013)

Invensys Free Cash Flow per Share Chart

Invensys Annual Data
	Trend	Mar04	Mar05	Mar06	Mar07	Mar08	Mar09	Mar10	Mar11	Mar12	Mar13
Free Cash Flow per Share		Get a 7-Day Free Trial					0.41	0.16	0.14	-0.04	0.18

Invensys Semi-Annual Data
	Mar03	Sep04	Mar05	Sep05	Mar06	Sep06	Mar07	Sep07	Mar08	Sep08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13
Free Cash Flow per Share	Get a 7-Day Free Trial															-0.20	0.17	-0.10	0.27	-0.57

Competitive Comparison of Invensys's Free Cash Flow per Share

For the Specialty Industrial Machinery subindustry, Invensys's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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.

Invensys's Price-to-Free-Cash-Flow Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Invensys's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Invensys's Price-to-Free-Cash-Flow falls into.

Invensys Free Cash Flow per Share Calculation

Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Invensys's Free Cash Flow Per Share for the fiscal year that ended in Mar. 2013 is calculated as

Invensys's Free Cash Flow Per Share for the quarter that ended in Sep. 2013 is calculated as

Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2013 adds up the semi-annually data reported by the company within the most recent 12 months, which was €-0.30

* 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.

Invensys  (FRA:SBPD) Free Cash Flow per Share Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Mar13, Invensys's Forward Rate of Return (Yacktman) % is

* 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.

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Invensys Free Cash Flow per Share Related Terms

Thank you for viewing the detailed overview of Invensys's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.

Invensys (FRA:SBPD) Business Description