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RLI (RLI) Cyclically Adjusted FCF per Share : $6.34 (As of Mar. 2024)


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What is RLI Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

RLI's adjusted free cash flow per share for the three months ended in Mar. 2024 was $1.513. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $6.34 for the trailing ten years ended in Mar. 2024.

During the past 12 months, RLI's average Cyclically Adjusted FCF Growth Rate was -100.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 17.60% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 15.20% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 7.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of RLI was 17.60% per year. The lowest was -6.70% per year. And the median was 6.10% per year.

As of today (2024-04-27), RLI's current stock price is $144.15. RLI's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $6.34. RLI's Cyclically Adjusted Price-to-FCF of today is 22.74.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of RLI was 30.86. The lowest was 11.82. And the median was 22.44.


RLI Cyclically Adjusted FCF per Share Historical Data

The historical data trend for RLI's Cyclically Adjusted FCF per Share 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.

RLI Cyclically Adjusted FCF per Share Chart

RLI Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.45 3.80 4.58 5.35 6.18

RLI Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted FCF per Share 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 5.62 5.97 6.07 6.18 6.34

Competitive Comparison of RLI's Cyclically Adjusted FCF per Share

For the Insurance - Property & Casualty subindustry, RLI'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.


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

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

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



RLI Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

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. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

For example, RLI'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)
=1.513/129.4194*129.4194
=1.513

Current CPI (Mar. 2024) = 129.4194.

RLI Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.882 100.560 1.135
201409 1.069 100.428 1.378
201412 0.806 99.070 1.053
201503 0.508 99.621 0.660
201506 1.033 100.684 1.328
201509 1.067 100.392 1.376
201512 0.621 99.792 0.805
201603 0.387 100.470 0.499
201606 0.986 101.688 1.255
201609 1.127 101.861 1.432
201612 1.060 101.863 1.347
201703 0.179 102.862 0.225
201706 1.375 103.349 1.722
201709 1.561 104.136 1.940
201712 1.116 104.011 1.389
201803 0.298 105.290 0.366
201806 1.856 106.317 2.259
201809 1.383 106.507 1.681
201812 1.165 105.998 1.422
201903 0.652 107.251 0.787
201906 1.616 108.070 1.935
201909 1.772 108.329 2.117
201912 1.920 108.420 2.292
202003 -0.171 108.902 -0.203
202006 1.945 108.767 2.314
202009 1.715 109.815 2.021
202012 2.181 109.897 2.568
202103 1.301 111.754 1.507
202106 2.229 114.631 2.517
202109 2.498 115.734 2.793
202112 2.213 117.630 2.435
202203 0.811 121.301 0.865
202206 2.878 125.017 2.979
202209 2.421 125.227 2.502
202212 -0.739 125.222 -0.764
202303 1.476 127.348 1.500
202306 3.754 128.729 3.774
202309 2.083 129.860 2.076
202312 2.637 129.419 2.637
202403 1.513 129.419 1.513

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


RLI  (NYSE:RLI) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

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.

RLI's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=144.15/6.34
=22.74

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of RLI was 30.86. The lowest was 11.82. And the median was 22.44.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


RLI Cyclically Adjusted FCF per Share Related Terms

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


RLI (RLI) Business Description

Industry
Traded in Other Exchanges
Address
9025 North Lindbergh Drive, Peoria, IL, USA, 61615
RLI Corp underwrites property and casualty insurance through its subsidiaries. The company offers insurance coverage in the specialty admitted market, where the products are designed for special risks. It also offers products in the excess and surplus markets, which provides an alternative for customers with risks or loss exposures that generally cannot be written in the standard admitted market. RLI distributes property and casualty insurance through its wholly-owned branch offices that market to wholesale and retail producers. The company's insurance operation segments include casualty, property, and surety and it derives a majority of its revenue from the Casualty segment.
Executives
Michael J Stone other: President RLI Insurance Compan C/O RLI CORP, 9025 N. LINDBERGH DR., PEORIA IL 61615
Michael E Angelina director C/O ENDURANCE SERVICES LIMITED, 333 WESTCHESTER AVENUE, WHITE PLAINS NY 10471
Paul Bennett Medini director THE ACE BUILDING, 17 WOODHOURNE AVE, HAMILTON BERMUDA D0 HM 08
Susan S. Fleming director C/O VIRTUS INVESTMENT PARTNERS, INC., 100 PEARL STREET, HARTFORD CT 06103
Seth Anthony Davis officer: Vice President, Controller 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Debbie Sharell Roberts director 204 W. 59TH STREET, BURR RIDGE IL 60527
Kaj Ahlmann director 17945 ROSEWOOD STREET, STILWELL KS 66085
Aaron Paul Diefenthaler officer: VP, CIO 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Restrepo Robert P Jr director
Calvin Jr Butler director 10 SOUTH DEARBORN STREET, 54TH FLOOR, CHICAGO IL 60603
Todd Wayne Bryant officer: Vice President, Controller 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Jennifer L Klobnak other: Sr. VP, Operations - RLI Ins. 9025 N LINDBERGH DRIVE, PEORIA IL 61615
James J. Scanlan director 6 TODMORDEN LANE, ROSE VALLEY PA 19086
Gerald I Lenrow director 4052 MANSION DR N.W., WASHINGTON DC 20007
Jonathan E Michael director, officer: President C/O RLI CORP, 9025 N. LINDBERGH DR., PEORIA IL 61615

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