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Lowe's (BSP:LOWC34) Cyclically Adjusted FCF per Share : R$2.32 (As of Apr. 2024)


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What is Lowe's Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

Lowe's's adjusted free cash flow per share for the three months ended in Apr. 2024 was R$1.740. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is R$2.32 for the trailing ten years ended in Apr. 2024.

During the past 12 months, Lowe's's average Cyclically Adjusted FCF Growth Rate was 16.80% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 19.30% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 20.30% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 20.70% 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 Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Lowe's was 123.40% per year. The lowest was -30.50% per year. And the median was 21.05% per year.

As of today (2024-06-07), Lowe's's current stock price is R$57.24. Lowe's's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 was R$2.32. Lowe's's Cyclically Adjusted Price-to-FCF of today is 24.67.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Lowe's was 46.44. The lowest was 17.24. And the median was 31.30.


Lowe's Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Lowe's's Cyclically Adjusted FCF 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.

Lowe's Cyclically Adjusted FCF per Share Chart

Lowe's Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.85 1.37 1.65 1.88 2.07

Lowe's Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Cyclically Adjusted FCF per Share 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 1.90 1.92 2.08 2.07 2.32

Competitive Comparison of Lowe's's Cyclically Adjusted FCF per Share

For the Home Improvement Retail subindustry, Lowe's'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.


Lowe's's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Lowe's Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

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. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

For example, Lowe's's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=1.74/131.7762*131.7762
=1.740

Current CPI (Apr. 2024) = 131.7762.

Lowe's Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201407 0.194 100.520 0.254
201410 0.070 100.176 0.092
201501 -0.007 98.604 -0.009
201504 0.359 99.824 0.474
201507 0.233 100.691 0.305
201510 0.023 100.346 0.030
201601 -0.026 99.957 -0.034
201604 0.597 100.947 0.779
201607 0.209 101.524 0.271
201610 0.057 101.988 0.074
201701 0.000 102.456 0.000
201704 0.566 103.167 0.723
201707 0.286 103.278 0.365
201710 -0.002 104.070 -0.003
201801 -0.125 104.578 -0.158
201804 0.661 105.708 0.824
201807 0.479 106.324 0.594
201810 0.165 106.695 0.204
201901 -0.218 106.200 -0.271
201904 0.472 107.818 0.577
201907 0.272 108.250 0.331
201910 0.034 108.577 0.041
202001 -0.101 108.841 -0.122
202004 1.450 108.173 1.766
202007 2.423 109.318 2.921
202010 -0.272 109.861 -0.326
202101 -0.384 110.364 -0.459
202104 1.559 112.673 1.823
202107 0.743 115.183 0.850
202110 0.745 116.696 0.841
202201 0.136 118.619 0.151
202204 0.946 121.978 1.022
202207 1.130 125.002 1.191
202210 0.730 125.734 0.765
202301 -0.124 126.223 -0.129
202304 0.726 127.992 0.747
202307 1.427 128.974 1.458
202310 0.212 129.810 0.215
202401 0.209 130.124 0.212
202404 1.740 131.776 1.740

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Lowe's  (BSP:LOWC34) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

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.

Lowe's's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=57.24/2.32
=24.67

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Lowe's was 46.44. The lowest was 17.24. And the median was 31.30.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Lowe's Cyclically Adjusted FCF per Share Related Terms

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


Lowe's (BSP:LOWC34) Business Description

Traded in Other Exchanges
Address
1000 Lowes Boulevard, Mooresville, NC, USA, 28117
Lowe's is the second-largest home improvement retailer in the world, operating more than 1,700 stores in the United States, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Réno-Dépôt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe's targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). We estimate Lowe's captures a low-double-digit share of the domestic home improvement market, based on U.S. Census data and management's market size estimates.

Lowe's (BSP:LOWC34) Headlines

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