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Loblaw (TSX:L) Cyclically Adjusted Price-to-FCF : 19.31 (As of May. 24, 2024)


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What is Loblaw Cyclically Adjusted Price-to-FCF?

As of today (2024-05-24), Loblaw's current share price is C$156.25. Loblaw's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was C$8.09. Loblaw's Cyclically Adjusted Price-to-FCF for today is 19.31.

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

TSX:L' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 12.75   Med: 17.11   Max: 22.56
Current: 19.23

During the past years, Loblaw's highest Cyclically Adjusted Price-to-FCF was 22.56. The lowest was 12.75. And the median was 17.11.

TSX:L's Cyclically Adjusted Price-to-FCF is ranked worse than
58.54% of 123 companies
in the Retail - Defensive industry
Industry Median: 15.72 vs TSX:L: 19.23

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.

Loblaw's adjusted free cash flow per share data for the three months ended in Mar. 2024 was C$1.504. 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 C$8.09 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Loblaw Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Loblaw'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.

Loblaw Cyclically Adjusted Price-to-FCF Chart

Loblaw 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 16.14 13.06 17.78 17.34 15.90

Loblaw Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 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 17.41 16.17 14.77 15.90 18.55

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

For the Grocery Stores subindustry, Loblaw'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.


Loblaw's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Loblaw's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Loblaw 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=156.25/8.09
=19.31

* 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.

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

For example, Loblaw'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)
=1.504/126.2576*126.2576
=1.504

Current CPI (Mar. 2024) = 126.2576.

Loblaw Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.573 98.604 -0.734
201406 1.787 99.473 2.268
201409 0.898 99.394 1.141
201412 1.294 98.367 1.661
201503 0.687 99.789 0.869
201506 1.701 100.500 2.137
201509 1.712 100.421 2.152
201512 0.317 99.947 0.400
201603 1.590 101.054 1.987
201606 1.266 102.002 1.567
201609 1.791 101.765 2.222
201612 0.962 101.449 1.197
201703 0.558 102.634 0.686
201706 1.544 103.029 1.892
201709 1.286 103.345 1.571
201712 1.530 103.345 1.869
201803 0.551 105.004 0.663
201806 0.909 105.557 1.087
201809 2.067 105.636 2.471
201812 -0.445 105.399 -0.533
201903 2.116 106.979 2.497
201906 2.003 107.690 2.348
201909 1.813 107.611 2.127
201912 1.578 107.769 1.849
202003 4.491 107.927 5.254
202009 1.908 108.164 2.227
202012 2.715 108.559 3.158
202103 1.867 110.298 2.137
202106 4.016 111.720 4.539
202109 2.899 112.905 3.242
202112 1.870 113.774 2.075
202203 2.011 117.646 2.158
202206 2.820 120.806 2.947
202209 3.237 120.648 3.388
202212 1.490 120.964 1.555
202303 1.847 122.702 1.901
202306 2.685 124.203 2.729
202309 4.240 125.230 4.275
202312 2.430 125.072 2.453
202403 1.504 126.258 1.504

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.


Loblaw  (TSX:L) 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.


Loblaw Cyclically Adjusted Price-to-FCF Related Terms

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


Loblaw (TSX:L) Business Description

Traded in Other Exchanges
Address
1 President’s Choice Circle, Brampton, ON, CAN, L6Y 5S5
Loblaw is Canada's largest retailer, operating 2,500 food retail and pharmacy stores across the country. Its main grocery banners include Loblaw, No Frills, and Maxi, and its pharmacy stores are mostly under the Shoppers Drug Mart banner, which it acquired in 2014. In addition to brand-name offerings, Loblaw offers private-label products under the President's Choice and No Name brands. Beyond retail, Loblaw runs the PC Optimum loyalty program and also offers credit cards and insurance brokerage, which are collectively referred to as financial services. George Weston is Loblaw's controlling shareholder with a 53% stake.
Executives
Jeffrey Francis Leger Senior Officer
Mark William Henry Wilson Senior Officer
Frank Gambioli Senior Officer
Nicholas Henn Senior Officer
Kieran Barry Columb Senior Officer

Loblaw (TSX:L) Headlines

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