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The Descartes Systems Group (STU:DC2) Cyclically Adjusted Price-to-FCF : 61.82 (As of Jun. 09, 2024)


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What is The Descartes Systems Group Cyclically Adjusted Price-to-FCF?

As of today (2024-06-09), The Descartes Systems Group's current share price is €84.70. The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 was €1.37. The Descartes Systems Group's Cyclically Adjusted Price-to-FCF for today is 61.82.

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

STU:DC2' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 41.54   Med: 59.87   Max: 110.09
Current: 62.22

During the past years, The Descartes Systems Group's highest Cyclically Adjusted Price-to-FCF was 110.09. The lowest was 41.54. And the median was 59.87.

STU:DC2's Cyclically Adjusted Price-to-FCF is ranked worse than
73.94% of 683 companies
in the Software industry
Industry Median: 28.4 vs STU:DC2: 62.22

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.

The Descartes Systems Group's adjusted free cash flow per share data for the three months ended in Apr. 2024 was €0.663. 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 €1.37 for the trailing ten years ended in Apr. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Descartes Systems Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Descartes Systems Group'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.

The Descartes Systems Group Cyclically Adjusted Price-to-FCF Chart

The Descartes Systems Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.14 73.74 69.62 59.19 61.40

The Descartes Systems Group Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
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 62.31 57.29 53.62 61.40 63.35

Competitive Comparison of The Descartes Systems Group's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, The Descartes Systems Group'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.


The Descartes Systems Group's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

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

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



The Descartes Systems Group 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.

The Descartes Systems Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=84.70/1.37
=61.82

* 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.

The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 is calculated as:

For example, The Descartes Systems Group's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=0.663/126.2576*126.2576
=0.663

Current CPI (Apr. 2024) = 126.2576.

The Descartes Systems Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201407 0.164 99.315 0.208
201410 0.117 99.473 0.149
201501 0.139 98.209 0.179
201504 0.132 99.710 0.167
201507 0.136 100.579 0.171
201510 0.142 100.500 0.178
201601 0.185 100.184 0.233
201604 0.168 101.370 0.209
201607 0.177 101.844 0.219
201610 0.231 102.002 0.286
201701 0.229 102.318 0.283
201704 0.191 103.029 0.234
201707 0.183 103.029 0.224
201710 0.184 103.424 0.225
201801 0.195 104.056 0.237
201804 0.188 105.320 0.225
201807 0.190 106.110 0.226
201810 0.202 105.952 0.241
201901 0.220 105.557 0.263
201904 0.251 107.453 0.295
201907 0.281 108.243 0.328
201910 0.276 107.927 0.323
202001 0.267 108.085 0.312
202004 0.285 107.216 0.336
202007 0.335 108.401 0.390
202010 0.320 108.638 0.372
202101 0.340 109.192 0.393
202104 0.381 110.851 0.434
202107 0.446 112.431 0.501
202110 0.420 113.695 0.466
202201 0.456 114.801 0.502
202204 0.459 118.357 0.490
202207 0.508 120.964 0.530
202210 0.586 121.517 0.609
202301 0.525 121.596 0.545
202304 0.501 123.571 0.512
202307 0.519 124.914 0.525
202310 0.596 125.310 0.601
202401 0.528 125.072 0.533
202404 0.663 126.258 0.663

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.


The Descartes Systems Group  (STU:DC2) 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.


The Descartes Systems Group Cyclically Adjusted Price-to-FCF Related Terms

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The Descartes Systems Group (STU:DC2) Business Description

Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

The Descartes Systems Group (STU:DC2) Headlines

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