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Sanlam (NAM:SLA) Cyclically Adjusted Price-to-FCF : 10.66 (As of Jun. 10, 2024)


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What is Sanlam Cyclically Adjusted Price-to-FCF?

As of today (2024-06-10), Sanlam's current share price is R71.31. Sanlam's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 was R6.69. Sanlam's Cyclically Adjusted Price-to-FCF for today is 10.66.

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

NAM:SLA' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.73   Med: 8.83   Max: 32.25
Current: 10.66

During the past 13 years, Sanlam's highest Cyclically Adjusted Price-to-FCF was 32.25. The lowest was 1.73. And the median was 8.83.

NAM:SLA's Cyclically Adjusted Price-to-FCF is ranked better than
50.46% of 325 companies
in the Insurance industry
Industry Median: 10.75 vs NAM:SLA: 10.66

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.

Sanlam's adjusted free cash flow per share data of for the fiscal year that ended in Dec23 was R-9.000. 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 R6.69 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sanlam Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Sanlam'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.

Sanlam Cyclically Adjusted Price-to-FCF Chart

Sanlam 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 8.73 6.57 7.58 6.07 10.88

Sanlam Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 7.58 - 6.07 - 10.88

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

For the Insurance - Life subindustry, Sanlam'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.


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

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

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



Sanlam 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=71.31/6.69
=10.66

* 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.

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

For example, Sanlam'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)
=-9/152.7175*152.7175
=-9.000

Current CPI (Dec23) = 152.7175.

Sanlam Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 17.769 96.794 28.035
201512 16.103 101.808 24.155
201612 7.142 109.002 10.006
201712 3.135 113.907 4.203
201812 5.180 118.921 6.652
201912 3.502 123.717 4.323
202012 -3.266 127.467 -3.913
202112 -0.975 135.029 -1.103
202212 3.387 145.156 3.563
202312 -9.000 152.718 -9.000

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.


Sanlam  (NAM:SLA) 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.


Sanlam Cyclically Adjusted Price-to-FCF Related Terms

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


Sanlam (NAM:SLA) Business Description

Industry
Traded in Other Exchanges
Address
2 Strand Road, Bellville, ZAF, 7530
Sanlam sells multiple insurance products and provides a variety of investment and wealth management services. Its products and services are organized into five categories: life insurance, general insurance, investment management, credit and structuring, and administration, health, and other. Life and general insurance products include life, disability, medical, vehicle, home, building, and all risk. Investment management services include retail savings, asset management, and wealth management. Credit and structuring services include debt investments in business. The administration, health, and other services include estate planning, trusts, wills, unsecured lending, and health management. The majority of revenue comes from Africa.

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