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Employers Holdings (Employers Holdings) Cyclically Adjusted Price-to-FCF : 11.77 (As of Apr. 27, 2024)


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What is Employers Holdings Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Employers Holdings's current share price is $44.01. Employers Holdings's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $3.74. Employers Holdings's Cyclically Adjusted Price-to-FCF for today is 11.77.

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

EIG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.95   Med: 10.57   Max: 15.86
Current: 11.77

During the past years, Employers Holdings's highest Cyclically Adjusted Price-to-FCF was 15.86. The lowest was 6.95. And the median was 10.57.

EIG's Cyclically Adjusted Price-to-FCF is ranked worse than
52.78% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs EIG: 11.77

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.

Employers Holdings's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $1.043. 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 $3.74 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Employers Holdings Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Employers Holdings'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.

Employers Holdings Cyclically Adjusted Price-to-FCF Chart

Employers Holdings 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 10.86 8.42 10.37 10.56 10.54

Employers Holdings 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 10.56 10.41 9.73 10.45 10.54

Competitive Comparison of Employers Holdings's Cyclically Adjusted Price-to-FCF

For the Insurance - Specialty subindustry, Employers Holdings'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.


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

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

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



Employers Holdings 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=44.01/3.74
=11.77

* 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.

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

For example, Employers Holdings'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)
=1.043/129.4194*129.4194
=1.043

Current CPI (Dec. 2023) = 129.4194.

Employers Holdings Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.160 99.695 1.506
201406 1.205 100.560 1.551
201409 1.626 100.428 2.095
201412 1.042 99.070 1.361
201503 0.740 99.621 0.961
201506 1.018 100.684 1.309
201509 0.907 100.392 1.169
201512 0.559 99.792 0.725
201603 0.649 100.470 0.836
201606 0.570 101.688 0.725
201609 1.602 101.861 2.035
201612 0.752 101.863 0.955
201703 0.825 102.862 1.038
201706 0.288 103.349 0.361
201709 1.794 104.136 2.230
201712 1.147 104.011 1.427
201803 1.300 105.290 1.598
201806 0.987 106.317 1.201
201809 1.483 106.507 1.802
201812 1.332 105.998 1.626
201903 0.464 107.251 0.560
201906 0.576 108.070 0.690
201909 2.048 108.329 2.447
201912 0.315 108.420 0.376
202003 0.437 108.902 0.519
202006 0.354 108.767 0.421
202009 0.636 109.815 0.750
202012 -0.534 109.897 -0.629
202103 -0.411 111.754 -0.476
202106 -0.493 114.631 -0.557
202109 0.517 115.734 0.578
202112 0.660 117.630 0.726
202203 0.570 121.301 0.608
202206 0.734 125.017 0.760
202209 1.053 125.227 1.088
202212 1.152 125.222 1.191
202303 0.139 127.348 0.141
202306 -0.295 128.729 -0.297
202309 0.934 129.860 0.931
202312 1.043 129.419 1.043

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.


Employers Holdings  (NYSE:EIG) 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.


Employers Holdings Cyclically Adjusted Price-to-FCF Related Terms

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


Employers Holdings (Employers Holdings) Business Description

Traded in Other Exchanges
Address
10375 Professional Circle, Reno, NV, USA, 89521
Employers Holdings Inc provides workers' compensation insurance, primarily to small businesses in low- to medium hazard industries. Its customers are employers, and the insurance premiums that those employers pay account for more than 90% of total company revenue. Substantially all of the remaining revenue is generated through investments. The company operates exclusively in the United States, and it generates more than half of its business in California. By industry, the company has the most exposure to restaurants, which account for roughly a fourth of the total premiums the company earns.
Executives
Katherine H. Antonello officer: EVP, Chief Actuary 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Alejandro Perez-tenessa director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Michael J Mcsally director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Christopher Laws officer: EVP, Chief Actuary 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Tracey Lynn Berg officer: EVP, Chief Information Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Stephen V Festa officer: Sr VP & CCO, EICN and ECIC 9790 GATEWAY DRIVE, SUITE 200, RENO NV 89521
Douglas D Dirks director, officer: President and CEO of EIG 10375 PROFESSIONAL CIRCLE, RENO NV 89521
De Figueiredo Joao M director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
James R Kroner director 600 FOURTH STREET, P.O. BOX 6000, SIOUX CITY IA 51102-6000
Jeanne L Mockard director PUTNAM INVESTMENTS, ONE POST OFFICE SQUARE, BOSTON MA 02109
Lawrence S Rogers officer: SVP, Chief Underwriting Office 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Richard W Blakey director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
John M. Mutschink officer: SVP, Chief HR Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Michael Scott Paquette officer: EVP, Chief Financial Officer EMPLOYERS HOLDINGS, INC., 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Barry J. Vogt officer: SVP, Chief Claims Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521