>
Switch to:

IHS Markit Free Cash Flow per Share

: $2.73 (TTM As of Aug. 2021)
View and export this data going back to 2005. Start your Free Trial

IHS Markit's Free Cash Flow per Share for the three months ended in Aug. 2021 was $0.86. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Aug. 2021 was $2.73.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of IHS Markit was 49.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 8.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 6.30% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 8.40% 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 IHS Markit's Free Cash Flow per Share or its related term are showing as below:

NYSE:INFO' s 3-Year FCF Growth Rate Range Over the Past 10 Years
Min: -6.9   Med: 18.4   Max: 70.3
Current: 8.5

-6.9
70.3

During the past 13 years, IHS Markit's highest 3-Year average Free Cash Flow per Share Growth Rate was 70.30% per year. The lowest was -6.90% per year. And the median was 18.40% per year.

NYSE:INFO's 3-Year FCF Growth Rate is ranked lower than
54% of the 683 Companies
in the Business Services industry.

( Industry Median: 12.00 vs. NYSE:INFO: 8.50 )

IHS Markit Free Cash Flow per Share Historical Data

The historical data trend for IHS Markit'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.

* Premium members only.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Free Cash Flow per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.55 1.69 2.62 2.38 2.15

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Free Cash Flow per Share 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 Premium Member Only Premium Member Only Premium Member Only 0.84 0.69 0.43 0.75 0.86

IHS Markit 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.

Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.

IHS Markit's Free Cash Flow Per Share for the fiscal year that ended in Nov. 2020 is calculated as

Free Cash Flow Per Share(A: Nov. 2020 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(1138.8+-274.8)/401.500
=864/401.500
=2.15

IHS Markit's Free Cash Flow Per Share for the quarter that ended in Aug. 2021 is calculated as

Free Cash Flow Per Share(Q: Aug. 2021 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(420.7+-76.8)/401.300
=343.9/401.300
=0.86

Free Cash Flow per Share for the trailing twelve months (TTM) ended in Aug. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.73

* 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.


IHS Markit  (NYSE:INFO) 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 Nov20, IHS Markit's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Nov20)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=2.18038095/120.6+0.1961
=21.42 %

* 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.


IHS Markit Free Cash Flow per Share Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

From GuruFocus

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)