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HDFC Life Insurance Company Limited (BOM:540777) Cyclically Adjusted Price-to-FCF : 12.72 (As of May. 26, 2024)


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What is HDFC Life Insurance Company Limited Cyclically Adjusted Price-to-FCF?

As of today (2024-05-26), HDFC Life Insurance Company Limited's current share price is ₹565.05. HDFC Life Insurance Company Limited's Cyclically Adjusted FCF per Share for the fiscal year that ended in Mar24 was ₹44.43. HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF for today is 12.72.

The historical rank and industry rank for HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BOM:540777' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 11.83   Med: 13.38   Max: 14.85
Current: 12.72

During the past 12 years, HDFC Life Insurance Company Limited's highest Cyclically Adjusted Price-to-FCF was 14.85. The lowest was 11.83. And the median was 13.38.

BOM:540777's Cyclically Adjusted Price-to-FCF is ranked worse than
57.32% of 314 companies
in the Insurance industry
Industry Median: 11.28 vs BOM:540777: 12.72

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.

HDFC Life Insurance Company Limited's adjusted free cash flow per share data of for the fiscal year that ended in Mar24 was ₹49.158. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is ₹44.43 for the trailing ten years ended in Mar24.

Shiller PE for Stocks: The True Measure of Stock Valuation


HDFC Life Insurance Company Limited Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for HDFC Life Insurance Company Limited'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.

* Premium members only.

HDFC Life Insurance Company Limited Cyclically Adjusted Price-to-FCF Chart

HDFC Life Insurance Company Limited Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 13.03 11.83 14.25

HDFC Life Insurance Company Limited Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF 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 - 11.83 - - 14.25

Competitive Comparison of HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF

For the Insurance - Life subindustry, HDFC Life Insurance Company Limited'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.


HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF falls into.



HDFC Life Insurance Company Limited 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.

HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=565.05/44.43
=12.72

* 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.

HDFC Life Insurance Company Limited's Cyclically Adjusted FCF per Share for the fiscal year that ended in Mar24 is calculated as:

For example, HDFC Life Insurance Company Limited's adjusted Free Cash Flow per Share data for the fiscal year that ended in Mar24 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar24 (Change)*Current CPI (Mar24)
=49.158/153.0345*153.0345
=49.158

Current CPI (Mar24) = 153.0345.

HDFC Life Insurance Company Limited Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201503 21.660 97.163 34.115
201603 28.140 102.518 42.006
201703 30.774 105.196 44.769
201803 33.245 109.786 46.341
201903 48.650 118.202 62.986
202003 36.376 124.705 44.640
202103 47.723 131.771 55.424
202203 28.754 138.822 31.698
202303 31.835 146.865 33.172
202403 49.158 153.035 49.158

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.


HDFC Life Insurance Company Limited  (BOM:540777) 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.


HDFC Life Insurance Company Limited Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of HDFC Life Insurance Company Limited's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


HDFC Life Insurance Company Limited (BOM:540777) Business Description

Traded in Other Exchanges
Address
N.M. Joshi Marg, 13th Floor, Lodha Excelus, Apollo Mills Compound, Mahalaxmi, Mumbai, MH, IND, 400 011
HDFC Life Insurance Company Limited is a long-term life insurance company. It offers individual and group insurance solutions such as Protection, Pension, Savings and Investment, and Health, along with Children's and Women's Plans. The company operates through segments namely, Participating Life (Individual & Group), Participating Pension (Individual & Group), Non-Participating Life (Individual & Group), Non-Participating Pension (Individual & Group), Non-Participating Life Group Variable, Non-Participating Pension Group Variable, Non-Participating - Annuity, Non Participating - Individual & Group Health, Unit Linked - Individual Life, Unit Linked - Individual Pension, Unit Linked - Group Life and Unit Linked - Group Pension.

HDFC Life Insurance Company Limited (BOM:540777) Headlines

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