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Discover Financial Services (Discover Financial Services) Cyclically Adjusted Price-to-FCF : 6.11 (As of May. 27, 2024)


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What is Discover Financial Services Cyclically Adjusted Price-to-FCF?

As of today (2024-05-27), Discover Financial Services's current share price is $123.22. Discover Financial Services's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $20.16. Discover Financial Services's Cyclically Adjusted Price-to-FCF for today is 6.11.

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

DFS' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 2.38   Med: 7.5   Max: 10.59
Current: 6.11

During the past years, Discover Financial Services's highest Cyclically Adjusted Price-to-FCF was 10.59. The lowest was 2.38. And the median was 7.50.

DFS's Cyclically Adjusted Price-to-FCF is ranked better than
60.95% of 105 companies
in the Credit Services industry
Industry Median: 9.9 vs DFS: 6.11

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.

Discover Financial Services's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $7.088. 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 $20.16 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Discover Financial Services Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Discover Financial Services'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.

Discover Financial Services Cyclically Adjusted Price-to-FCF Chart

Discover Financial Services 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 7.99 7.69 8.38 5.94 5.79

Discover Financial Services 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 5.81 6.63 4.66 5.79 6.50

Competitive Comparison of Discover Financial Services's Cyclically Adjusted Price-to-FCF

For the Credit Services subindustry, Discover Financial Services'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.


Discover Financial Services's Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

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

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



Discover Financial Services 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.

Discover Financial Services's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=123.22/20.16
=6.11

* 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.

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

For example, Discover Financial Services'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)
=7.088/131.7762*131.7762
=7.088

Current CPI (Mar. 2024) = 131.7762.

Discover Financial Services Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.310 100.560 1.717
201409 2.226 100.428 2.921
201412 2.122 99.070 2.823
201503 2.281 99.621 3.017
201506 1.251 100.684 1.637
201509 2.571 100.392 3.375
201512 2.322 99.792 3.066
201603 2.667 100.470 3.498
201606 1.504 101.688 1.949
201609 3.162 101.861 4.091
201612 3.160 101.863 4.088
201703 2.503 102.862 3.207
201706 2.541 103.349 3.240
201709 4.027 104.136 5.096
201712 4.365 104.011 5.530
201803 3.324 105.290 4.160
201806 4.385 106.317 5.435
201809 4.523 106.507 5.596
201812 2.036 105.998 2.531
201903 6.869 107.251 8.440
201906 4.672 108.070 5.697
201909 2.391 108.329 2.909
201912 4.476 108.420 5.440
202003 5.263 108.902 6.368
202006 4.879 108.767 5.911
202009 4.062 109.815 4.874
202012 4.947 109.897 5.932
202103 4.779 111.754 5.635
202106 4.908 114.631 5.642
202109 5.275 115.734 6.006
202112 4.447 117.630 4.982
202203 5.905 121.301 6.415
202206 5.606 125.017 5.909
202209 5.620 125.227 5.914
202212 7.698 125.222 8.101
202303 6.546 127.348 6.774
202306 5.632 128.729 5.765
202309 9.248 129.860 9.384
202312 11.187 129.419 11.391
202403 7.088 131.776 7.088

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.


Discover Financial Services  (NYSE:DFS) 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.


Discover Financial Services Cyclically Adjusted Price-to-FCF Related Terms

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


Discover Financial Services (Discover Financial Services) Business Description

Traded in Other Exchanges
Address
2500 Lake Cook Road, Riverwoods, IL, USA, 60015
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts, students loans, and other personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
Executives
Kathy Lonowski director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Michael Shepherd director 567 HALE STREET, PALO ALTO CA 94301
Jason Strle officer: EVP, Chief Information Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Jason P. Hanson officer: EVP, Pres. - Payment Services 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Daniela O'leary-gill director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Beverley A Sibblies director 2700 SANDERS ROAD, PROSPECT HEIGHTS IL 60070
Robert Andrew Eichfeld officer: EVP - Chief HR & Admin Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Carlos Minetti officer: EVP, Pres. - Consumer Banking 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Hope Mehlman officer: EVP, Chief Legal Officer & GC 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Michael H Moskow director 444 WEST LAKE STREET, STE. 4700, CHICAGO IL 60606
John B Owen director REGIONS FINANCIAL CORPORATION, 1900 5TH AVENUE NORTH, 21ST FLOOR, BIRMINGHAM AL 35203
John Greene officer: EVP & Chief Financial Officer 51 LIME STREET, LONDON X0 EC3M 7DQ
Shifra Kolsky officer: SVP, Controller and CAO 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Michael E Roemer officer: EVP, Chief Risk Officer AMERICAN INTERNATIONAL GROUP, INC., 70 PINE STREET, NEW YORK NY 10270
Daniel Peter Capozzi officer: EVP, Pres - Cr Ops & Dec Mgmt 2500 LAKE COOK ROAD, RIVERWOODS IL 60015