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FAR (ASX:FAR) Cyclically Adjusted Price-to-FCF : (As of Jun. 07, 2024)


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What is FAR Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


FAR Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for FAR's Cyclically Adjusted Price-to-FCF 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.

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FAR Cyclically Adjusted Price-to-FCF Chart

FAR Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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FAR Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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Competitive Comparison of FAR's Cyclically Adjusted Price-to-FCF

For the Oil & Gas E&P subindustry, FAR'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.


FAR's Cyclically Adjusted Price-to-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, FAR's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



FAR Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

FAR's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, FAR's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=-0.071/126.3989*126.3989
=-0.071

Current CPI (Dec23) = 126.3989.

FAR Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 -1.060 99.002 -1.353
201512 -1.507 100.673 -1.892
201612 -1.739 102.159 -2.152
201712 -1.263 104.110 -1.533
201812 -0.836 105.967 -0.997
201912 -0.864 107.917 -1.012
202012 -1.224 108.846 -1.421
202112 -0.511 112.654 -0.573
202212 -0.316 121.477 -0.329
202312 -0.071 126.399 -0.071

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


FAR  (ASX:FAR) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


FAR Cyclically Adjusted Price-to-FCF Related Terms

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FAR (ASX:FAR) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » FAR Ltd (ASX:FAR) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
530 Collins Street, Level 12, Melbourne, VIC, AUS, 3000
FAR Ltd is an independent oil and gas explorer with interests in Australia and Africa. Its projects include Africa, Gambia, Guinea-Bissau, Kenya, and Australia. The company in West Africa has a portfolio of exploration permits, including offshore Senegal, which consists of FAN-1 and SNE-1 exploration wells.

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