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ABB (OSTO:ABB) Cyclically Adjusted FCF per Share : kr13.70 (As of Mar. 2024)


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What is ABB 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.

ABB's adjusted free cash flow per share for the three months ended in Mar. 2024 was kr3.064. 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 kr13.70 for the trailing ten years ended in Mar. 2024.

During the past 12 months, ABB's average Cyclically Adjusted FCF Growth Rate was 8.40% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 1.90% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was -2.40% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was -0.10% 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 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 ABB was 26.40% per year. The lowest was -5.60% per year. And the median was 2.30% per year.

As of today (2024-06-07), ABB's current stock price is kr584.40. ABB's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was kr13.70. ABB's Cyclically Adjusted Price-to-FCF of today is 42.66.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of ABB was 43.72. The lowest was 13.04. And the median was 19.52.


ABB Cyclically Adjusted FCF per Share Historical Data

The historical data trend for ABB'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.

ABB Cyclically Adjusted FCF per Share Chart

ABB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.17 9.73 10.69 11.61 13.25

ABB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 12.15 13.14 13.23 13.25 13.70

Competitive Comparison of ABB's Cyclically Adjusted FCF per Share

For the Electrical Equipment & Parts subindustry, ABB'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.


ABB's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ABB's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



ABB 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, ABB's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=3.064/107.3549*107.3549
=3.064

Current CPI (Mar. 2024) = 107.3549.

ABB Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.949 101.517 2.061
201409 2.941 101.247 3.118
201412 4.861 100.704 5.182
201503 -0.466 100.339 -0.499
201506 1.536 100.464 1.641
201509 3.703 99.785 3.984
201512 6.420 99.386 6.935
201603 0.313 99.475 0.338
201606 3.485 100.088 3.738
201609 3.578 99.604 3.856
201612 5.716 99.380 6.175
201703 1.316 100.040 1.412
201706 0.976 100.285 1.045
201709 2.808 100.254 3.007
201712 6.777 100.213 7.260
201803 -2.724 100.836 -2.900
201806 3.524 101.435 3.730
201809 1.560 101.246 1.654
201812 6.900 100.906 7.341
201903 -2.016 101.571 -2.131
201906 -0.746 102.044 -0.785
201909 2.356 101.396 2.494
201912 7.399 101.063 7.860
202003 -3.407 101.048 -3.620
202006 2.353 100.743 2.507
202009 1.166 100.585 1.244
202012 3.715 100.241 3.979
202103 1.684 100.800 1.794
202106 2.117 101.352 2.242
202109 4.016 101.533 4.246
202112 3.007 101.776 3.172
202203 -3.722 103.205 -3.872
202206 1.209 104.783 1.239
202209 3.616 104.835 3.703
202212 2.363 104.666 2.424
202303 0.732 106.245 0.740
202306 3.335 106.576 3.359
202309 6.990 106.570 7.042
202312 9.030 106.461 9.106
202403 3.064 107.355 3.064

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


ABB  (OSTO:ABB) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=584.40/13.7
=42.66

* 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 ABB was 43.72. The lowest was 13.04. And the median was 19.52.


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.


ABB Cyclically Adjusted FCF per Share Related Terms

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


ABB (OSTO:ABB) Business Description

Industry
Address
Affolternstrasse 44, Zurich, CHE, 8050
ABB is a supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation that are sold via approximately 20 business divisions. ABB is the number one or two supplier in two thirds of its product segments.

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