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Fanhua (FRA:4CIA) Cyclically Adjusted Price-to-FCF : 5.58 (As of Jun. 02, 2024)


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What is Fanhua Cyclically Adjusted Price-to-FCF?

As of today (2024-06-02), Fanhua's current share price is €2.96. Fanhua's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was €0.53. Fanhua's Cyclically Adjusted Price-to-FCF for today is 5.58.

The historical rank and industry rank for Fanhua's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

FRA:4CIA' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 5.08   Med: 11.18   Max: 43.18
Current: 5.25

During the past years, Fanhua's highest Cyclically Adjusted Price-to-FCF was 43.18. The lowest was 5.08. And the median was 11.18.

FRA:4CIA's Cyclically Adjusted Price-to-FCF is ranked better than
75.8% of 314 companies
in the Insurance industry
Industry Median: 11.44 vs FRA:4CIA: 5.25

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.

Fanhua's adjusted free cash flow per share data for the three months ended in Dec. 2023 was €0.132. 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 €0.53 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Fanhua Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Fanhua'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.

Fanhua Cyclically Adjusted Price-to-FCF Chart

Fanhua Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.16 13.35 9.66 11.47 10.87

Fanhua Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 11.47 13.45 12.85 11.32 10.87

Competitive Comparison of Fanhua's Cyclically Adjusted Price-to-FCF

For the Insurance Brokers subindustry, Fanhua'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.


Fanhua's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

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

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



Fanhua 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.

Fanhua's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=2.96/0.53
=5.58

* 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.

Fanhua's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Fanhua's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.132/114.7809*114.7809
=0.132

Current CPI (Dec. 2023) = 114.7809.

Fanhua Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.111 98.600 0.129
201406 0.193 98.200 0.226
201409 0.135 98.900 0.157
201412 0.182 99.000 0.211
201503 -0.012 99.900 -0.014
201506 0.130 99.500 0.150
201509 0.127 100.500 0.145
201512 0.403 100.600 0.460
201603 0.048 102.200 0.054
201606 -0.225 101.400 -0.255
201609 -0.031 102.400 -0.035
201612 0.246 102.600 0.275
201703 0.020 103.200 0.022
201706 0.223 103.100 0.248
201709 -0.052 104.100 -0.057
201712 0.119 104.500 0.131
201803 0.052 105.300 0.057
201806 -0.021 104.900 -0.023
201809 0.587 106.600 0.632
201812 0.463 106.500 0.499
201903 0.110 107.700 0.117
201906 -0.283 107.700 -0.302
201909 0.303 109.800 0.317
201912 0.298 111.200 0.308
202003 0.323 112.300 0.330
202006 0.093 110.400 0.097
202009 0.295 111.700 0.303
202012 0.235 111.500 0.242
202103 0.193 112.662 0.197
202106 -0.096 111.769 -0.099
202109 0.043 112.215 0.044
202112 0.176 113.108 0.179
202203 -0.232 114.335 -0.233
202206 0.132 114.558 0.132
202209 0.053 115.339 0.053
202212 0.390 115.116 0.389
202303 -0.047 115.116 -0.047
202306 0.125 114.558 0.125
202309 0.031 115.339 0.031
202312 0.132 114.781 0.132

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.


Fanhua  (FRA:4CIA) 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.


Fanhua Cyclically Adjusted Price-to-FCF Related Terms

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


Fanhua (FRA:4CIA) Business Description

Industry
Traded in Other Exchanges
Address
No.15 West Zhujiang Road, 60th Floor, Pearl River Tower, Guangdong, Guangzhou, CHN, 510623
Fanhua Inc is an independent insurance intermediary company operating in China. The company sells insurance product offerings from various insurance companies through their online platforms Lan Zhanggui, Baowang, and eHuzhu. The company's segments include the insurance agency segment, which mainly consists of providing agency services for distributing life insurance products and P&C insurance products on behalf of insurance companies; and the claims adjusting segment, which consists of providing pre-underwriting survey services, claim adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The insurance agency segment contributes to the majority of the revenue. The company generates all of its revenues from China.

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