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Shell (RDS.B) Cyclically Adjusted Price-to-FCF : (As of May. 05, 2024)


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What is Shell Cyclically Adjusted Price-to-FCF?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted Price-to-FCF for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


Shell Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Shell'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.

Shell Cyclically Adjusted Price-to-FCF Chart

Shell 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 20.74 10.31 11.27 12.16 10.98

Shell Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 11.66 11.18 12.01 10.98 11.08

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

For the Oil & Gas Integrated subindustry, Shell'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.


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

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

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



Shell 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.

Shell's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Shell's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.434/130.0000*130.0000
=2.434

Current CPI (Mar. 2024) = 130.0000.

Shell Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.232 99.800 0.302
201409 1.588 100.000 2.064
201412 0.247 99.900 0.321
201503 0.279 99.600 0.364
201506 -0.049 100.100 -0.064
201509 1.507 100.200 1.955
201512 -0.585 100.400 -0.757
201603 -1.290 100.400 -1.670
201606 -0.870 101.000 -1.120
201609 0.792 101.500 1.014
201612 0.846 102.200 1.076
201703 1.265 102.700 1.601
201706 1.357 103.500 1.704
201709 0.616 104.300 0.768
201712 0.338 105.000 0.418
201803 1.118 105.100 1.383
201806 1.009 105.900 1.239
201809 1.507 106.600 1.838
201812 3.589 107.100 4.356
201903 0.855 107.000 1.039
201906 1.443 107.900 1.739
201909 1.552 108.400 1.861
201912 0.894 108.500 1.071
202003 2.708 108.600 3.242
202006 -0.224 108.800 -0.268
202009 1.719 109.200 2.046
202012 0.278 109.400 0.330
202103 1.126 109.700 1.334
202106 2.140 111.400 2.497
202109 2.927 112.400 3.385
202112 0.499 114.700 0.566
202203 2.753 116.500 3.072
202206 3.118 120.500 3.364
202209 1.892 122.300 2.011
202212 4.161 125.300 4.317
202303 2.082 126.800 2.135
202306 2.737 129.400 2.750
202309 1.841 130.100 1.840
202312 1.460 130.000 1.460
202403 2.434 130.000 2.434

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.


Shell  (NYSE:RDS.B) 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.


Shell Cyclically Adjusted Price-to-FCF Related Terms

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


Shell (RDS.B) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Shell PLC (NYSE:RDS.B) » Definitions » Cyclically Adjusted Price-to-FCF
Address
Shell Centre, London, GBR, SE1 7NA
Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.

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