Market Cap : 41.4 B | Enterprise Value : 43.71 B | PE Ratio : 14.64 | PB Ratio : 3.24 |
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Biogen's Free Cash Flow per Share for the three months ended in Sep. 2022 was $4.16. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2022 was $14.85.
During the past 12 months, the average Free Cash Flow per Share Growth Rate of Biogen was 5.30% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -4.70% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 10.10% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.
The historical rank and industry rank for Biogen's Free Cash Flow per Share or its related term are showing as below:
During the past 13 years, Biogen's highest 3-Year average Free Cash Flow per Share Growth Rate was 181.50% per year. The lowest was -124.10% per year. And the median was 23.30% per year.
The historical data trend for Biogen's Free Cash Flow per Share 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.
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.
Biogen's Free Cash Flow Per Share for the fiscal year that ended in Dec. 2021 is calculated as
Free Cash Flow Per Share | (A: Dec. 2021 ) | ||||
= | (Cash Flow from Operations | + | Capital Expenditure) | / | Shares Outstanding (Diluted Average) |
= | (3639.9 | + | -294.9) | / | 149.600 |
= | 3345 | / | 149.600 | ||
= | 22.36 |
Biogen's Free Cash Flow Per Share for the quarter that ended in Sep. 2022 is calculated as
Free Cash Flow Per Share | (Q: Sep. 2022 ) | ||||
= | (Cash Flow from Operations | + | Capital Expenditure) | / | Shares Outstanding (Diluted Average) |
= | (661 | + | -59.1) | / | 144.800 |
= | 601.9 | / | 144.800 | ||
= | 4.16 |
Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.85
* 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.
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 Dec21, Biogen's Forward Rate of Return (Yacktman) % is
Forward Rate of Return (Yacktman) % (Dec21) | = | Normalized Free Cash Flow | / | Price | + | 5-Year EBITDA Growth Rate |
= | 24.14285714 | / | 267 | + | -0.0785 | |
= | 1.19 % |
* 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.
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.
Thank you for viewing the detailed overview of Biogen's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.
Christopher Viehbacher | director, officer: President and CEO | C/O AXCELLA HEALTH, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Nicole Murphy | officer: Head of Pharm Ops and Tech | BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142 |
Rachid Izzar | officer: Head of Alzheimer's Disease | BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142 |
Jones William D /ca/ | director | |
Maria C Freire | director | C/O ALEXANDRIA REAL ESTATE EQUITIES, INC, 26 NORTH EUCLID AVENUE, PASADENA CA 91101 |
Michael R Mcdonnell | officer: EVP, Chief Financial Officer | C/O IQVIA HOLDINGS INC., 83 WOOSTER HEIGHTS ROAD, DANBURY CT 06810 |
Alphonse Galdes | officer: EVP Pharmaceutical Oper & Tech | BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142 |
William A Hawkins | director | MEDTRONIC INC, 710 MEDTRONIC PKWY, MS LC310, MINNEAPOLIS MN 55432-5604 |
Jesus B Mantas | director | BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142 |
Robin Kramer | officer: VP, Chief Accounting Officer | 999 VANDERBILT BEACH ROAD, 3RD FLOOR, NAPLES FL 34109 |
Daniel Karp | officer: EVP, Corporate Development | 225 BINNEY STREET, CAMBRIDGE MA 02142 |
Jeffrey D Capello | officer: EVP & Chief Financial Officer | C/O NEOGEN CORP., 620 LESHER PLACE, LANSING MI 48912 |
Chirfi Guindo | officer: EVP Glob. Mkt Acc & Cust Innov | C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142 |
Ginger Gregory | officer: EVP, Human Resources | C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142 |
Jean-paul Kress | officer: EVP Pres Int'l & Global Hd GTO | 215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142 |
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