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RM (LSE:RM.) Cyclically Adjusted Price-to-FCF : 86.00 (As of Jun. 11, 2024)


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What is RM Cyclically Adjusted Price-to-FCF?

As of today (2024-06-11), RM's current share price is £0.86. RM's Cyclically Adjusted FCF per Share for the fiscal year that ended in Nov23 was £0.01. RM's Cyclically Adjusted Price-to-FCF for today is 86.00.

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

LSE:RM.' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 2.09   Med: 15   Max: 118.15
Current: 118.15

During the past 13 years, RM's highest Cyclically Adjusted Price-to-FCF was 118.15. The lowest was 2.09. And the median was 15.00.

LSE:RM.'s Cyclically Adjusted Price-to-FCF is ranked worse than
86.22% of 682 companies
in the Software industry
Industry Median: 28.365 vs LSE:RM.: 118.15

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.

RM's adjusted free cash flow per share data of for the fiscal year that ended in Nov23 was £-0.138. 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 £0.01 for the trailing ten years ended in Nov23.

Shiller PE for Stocks: The True Measure of Stock Valuation


RM Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for RM'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.

RM Cyclically Adjusted Price-to-FCF Chart

RM Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.85 15.24 17.74 8.26 76.08

RM Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 17.74 - 8.26 - 76.08

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

For the Software - Application subindustry, RM'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.


RM's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, RM's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



RM 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=0.86/0.01
=86.00

* 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.

RM's Cyclically Adjusted FCF per Share for the fiscal year that ended in Nov23 is calculated as:

For example, RM's adjusted Free Cash Flow per Share data for the fiscal year that ended in Nov23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Nov23 (Change)*Current CPI (Nov23)
=-0.138/130.0000*130.0000
=-0.138

Current CPI (Nov23) = 130.0000.

RM Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201411 0.021 99.900 0.027
201511 0.053 100.300 0.069
201611 -0.049 101.800 -0.063
201711 0.127 104.700 0.158
201811 0.186 106.900 0.226
201911 0.068 108.500 0.081
202011 0.151 109.100 0.180
202111 -0.133 114.100 -0.152
202211 -0.307 124.800 -0.320
202311 -0.138 130.000 -0.138

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.


RM  (LSE:RM.) 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.


RM Cyclically Adjusted Price-to-FCF Related Terms

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


RM (LSE:RM.) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » RM PLC (LSE:RM.) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
142B Park Drive, Milton Park, Milton, Abingdon, Oxfordshire, GBR, OX14 4SE
RM PLC provides resources, software, and services to the education sector. The company is structured into three operating divisions: RM Resources, RM Assessment, and RM Technology. The RM Resources division consists of the operating business of TTS. TTS provides education resources used in schools through a predominantly direct marketing business model. The RM Assessment business provides IT software and services to exam boards and professional bodies to allow e-assessment. RM Technology division focuses on supplying IT software and services to schools and colleges. Its primary geographic markets are the United Kingdom, Europe, North America, Asia, the Middle East, and the Rest of the world.

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