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Arch Capital Group (Arch Capital Group) Cyclically Adjusted Price-to-FCF : 13.37 (As of Apr. 27, 2024)


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What is Arch Capital Group Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Arch Capital Group's current share price is $90.90. Arch Capital Group's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $6.80. Arch Capital Group's Cyclically Adjusted Price-to-FCF for today is 13.37.

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

ACGL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.71   Med: 10.61   Max: 16
Current: 13.68

During the past years, Arch Capital Group's highest Cyclically Adjusted Price-to-FCF was 16.00. The lowest was 6.71. And the median was 10.61.

ACGL's Cyclically Adjusted Price-to-FCF is ranked worse than
60.49% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs ACGL: 13.68

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.

Arch Capital Group's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $4.339. 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 $6.80 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arch Capital Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Arch Capital 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.

Arch Capital Group Cyclically Adjusted Price-to-FCF Chart

Arch Capital Group 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 14.39 10.25 10.15 11.66 10.92

Arch Capital Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 11.66 11.98 12.54 12.33 10.92

Competitive Comparison of Arch Capital Group's Cyclically Adjusted Price-to-FCF

For the Insurance - Diversified subindustry, Arch Capital 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.


Arch Capital Group's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

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

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



Arch Capital 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.

Arch Capital Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=90.90/6.8
=13.37

* 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.

Arch Capital Group's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Arch Capital Group's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=4.339/129.4194*129.4194
=4.339

Current CPI (Dec. 2023) = 129.4194.

Arch Capital Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.471 99.695 0.611
201406 0.609 100.560 0.784
201409 0.840 100.428 1.082
201412 0.592 99.070 0.773
201503 0.213 99.621 0.277
201506 0.785 100.684 1.009
201509 1.114 100.392 1.436
201512 0.494 99.792 0.641
201603 0.853 100.470 1.099
201606 0.575 101.688 0.732
201609 1.314 101.861 1.670
201612 0.895 101.863 1.137
201703 0.428 102.862 0.539
201706 0.823 103.349 1.031
201709 1.289 104.136 1.602
201712 0.067 104.011 0.083
201803 0.947 105.290 1.164
201806 0.212 106.317 0.258
201809 1.502 106.507 1.825
201812 1.044 105.998 1.275
201903 0.553 107.251 0.667
201906 1.144 108.070 1.370
201909 1.983 108.329 2.369
201912 1.196 108.420 1.428
202003 1.454 108.902 1.728
202006 1.720 108.767 2.047
202009 2.446 109.815 2.883
202012 1.321 109.897 1.556
202103 1.834 111.754 2.124
202106 2.063 114.631 2.329
202109 2.524 115.734 2.822
202112 2.036 117.630 2.240
202203 1.408 121.301 1.502
202206 2.355 125.017 2.438
202209 3.655 125.227 3.777
202212 2.583 125.222 2.670
202303 2.521 127.348 2.562
202306 3.002 128.729 3.018
202309 5.163 129.860 5.146
202312 4.339 129.419 4.339

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.


Arch Capital Group  (NAS:ACGL) 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.


Arch Capital Group Cyclically Adjusted Price-to-FCF Related Terms

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


Arch Capital Group (Arch Capital Group) Business Description

Address
100 Pitts Bay Road, Waterloo House, Ground Floor, Pembroke, BMU, HM 08
Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and South Africa. The business operates through three segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients worldwide across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
Executives
Nicolas Papadopoulo other: Officer of Subsidiary WESSEX HOUSE, 3RD FLOOR, 45 REID STREET, HAMILTON D0 HM 12
Marc Grandisson officer: Officer of Subsidiary C/O ARCH REINSURANCE LTD, WESSEX HOUSE 45 REID ST, HAMILTON BERMUDA D0 999999999
David Gansberg officer: CEO, Global Mortgage Group 230 NORTH ELM STREET, GREENSBORO NC 27401
Louis T Petrillo officer: President, Gen Counsel & Secr. C/O ARCH CAPITAL SERVICES INC, 20 HORSENECK LANE, GREENWICH CT 06830
Maamoun Rajeh officer: Chairman & CEO Arch Re Group WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
Francois Morin officer: EVP and CFO WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
Bunce John L Jr director C/O WESTERN WIRELESS CORP, 3650 131ST AVE. S.E . #400, BELLEVUE WA 98006
Brian S Posner director 14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
John M Pasquesi director C/O OTTER CAPITAL, ONE MARITIME PLAZA SUITE 1400, SAN FRANCISCO CA 94111
Francis Ebong director WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
Eileen A Mallesch director 3776 SOUTH HIGH ST, COLUMBUS OH 43207
Christine Todd officer: SVP & Chief Investment Officer C/O ARCH CAPITAL GROUP LTD, WATERLOO HOUSE, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
W Preston Hutchings officer: SVP & Chief Investment Officer WESSEX HOUSE 45 REID STREET, 4TH FLOOR, HAMILTON D0 HM12
Moira A. Kilcoyne director 632 HUDSON STREET, HOBOKEN NJ 07030
Thomas R Watjen director UNUM GROUP, 1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402

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