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Element Solutions (Element Solutions) Cyclically Adjusted Price-to-FCF : 27.73 (As of Apr. 27, 2024)


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What is Element Solutions Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Element Solutions's current share price is $23.85. Element Solutions's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.86. Element Solutions's Cyclically Adjusted Price-to-FCF for today is 27.73.

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

ESI' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.32   Med: 24.11   Max: 29.05
Current: 27.56

During the past years, Element Solutions's highest Cyclically Adjusted Price-to-FCF was 29.05. The lowest was 20.32. And the median was 24.11.

ESI's Cyclically Adjusted Price-to-FCF is ranked worse than
55.12% of 566 companies
in the Chemicals industry
Industry Median: 23.705 vs ESI: 27.56

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.

Element Solutions's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $0.383. 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 $0.86 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Element Solutions Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Element Solutions'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.

Element Solutions Cyclically Adjusted Price-to-FCF Chart

Element Solutions 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 - - - 22.44 26.93

Element Solutions 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 22.44 23.84 23.20 23.21 26.93

Competitive Comparison of Element Solutions's Cyclically Adjusted Price-to-FCF

For the Specialty Chemicals subindustry, Element Solutions'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.


Element Solutions's Cyclically Adjusted Price-to-FCF Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Element Solutions's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Element Solutions 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=23.85/0.86
=27.73

* 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.

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

For example, Element Solutions'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)
=0.383/129.4194*129.4194
=0.383

Current CPI (Dec. 2023) = 129.4194.

Element Solutions Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.178 99.695 0.231
201406 0.198 100.560 0.255
201409 0.181 100.428 0.233
201412 0.045 99.070 0.059
201503 -0.094 99.621 -0.122
201506 0.462 100.684 0.594
201509 0.133 100.392 0.171
201512 0.802 99.792 1.040
201603 -0.967 100.470 -1.246
201606 0.375 101.688 0.477
201609 0.299 101.861 0.380
201612 0.650 101.863 0.826
201703 -0.472 102.862 -0.594
201706 0.333 103.349 0.417
201709 0.289 104.136 0.359
201712 0.266 104.011 0.331
201803 -0.576 105.290 -0.708
201806 0.219 106.317 0.267
201809 0.084 106.507 0.102
201812 0.144 105.998 0.176
201903 -0.576 107.251 -0.695
201906 0.051 108.070 0.061
201909 0.241 108.329 0.288
201912 0.874 108.420 1.043
202003 0.143 108.902 0.170
202006 0.296 108.767 0.352
202009 0.193 109.815 0.227
202012 0.358 109.897 0.422
202103 0.097 111.754 0.112
202106 0.289 114.631 0.326
202109 0.328 115.734 0.367
202112 0.415 117.630 0.457
202203 -0.061 121.301 -0.065
202206 0.258 125.017 0.267
202209 0.472 125.227 0.488
202212 0.346 125.222 0.358
202303 0.184 127.348 0.187
202306 0.290 128.729 0.292
202309 0.306 129.860 0.305
202312 0.383 129.419 0.383

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.


Element Solutions  (NYSE:ESI) 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.


Element Solutions Cyclically Adjusted Price-to-FCF Related Terms

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


Element Solutions (Element Solutions) Business Description

Industry
Traded in Other Exchanges
Address
500 East Broward Boulevard, Suite 1860, Fort Lauderdale, FL, USA, 33394
Element Solutions Inc is a specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. The company has two segments which are Electronics and Industrial & Specialty. The Industrial & Specialty segment researches, formulates and sells specialty chemicals and process technologies that enhance surfaces or improve industrial processes in diverse industrial sectors from automotive trim to transcontinental infrastructure and from high-speed printing to high-design faucets. The electronics segment researches, formulates and sells specialty chemicals and material process technologies for all types of electronics hardware, from complex printed circuit board designs to semiconductor packaging.
Executives
Nichelle Maynard-elliott director PLATFORM SPECIALTY PRODUCTS CORPORATION, 383 MAIN AVENUE, NORWALK CT 06851
Michael Goralski officer: See Remarks 383 MAIN AVENUE, 6TH FLOOR, NORWALK CT 06851
Benjamin Gliklich officer: VP Corporate Dev, Finance & IR 245 FREIGHT STREET, WATERBURY CT 06702
Carey J. Dorman officer: Chief Financial Officer C/O ELEMENT SOLUTIONS INC, 383 MAIN AVENUE, 6TH FLOOR, NORWALK CT 06851
Martin E Franklin director C/O MARIPOSA CAPITAL, LLC, 5200 BLUE LAGOON DRIVE, SUITE 855, MIAMI FL 33126
Elyse Napoli Filon director 383 MAIN AVENUE, 6TH FLOOR, NORWALK CT 06851
Scot Benson officer: President - Perf. Solutions 245 FREIGHT STREET, WATERBURY CT 06702
Joseph J. D'ambrisi officer: SVP and Head of Electronics 383 MAIN AVENUE, 6TH FLOOR, NORWALK CT 06851
Patricia Mount officer: VP, Program Mgt & Integration JARDEN CORPORATION, 555 THEODORE FREMD AVENUE, RYE NY 10580
Christopher T. Fraser director 9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Ashken Ian G H director C/O MARIPOSA CAPITAL, LLC, 5200 BLUE LAGOON DRIVE, SUITE 855, MIAMI FL 33126
John Edward Capps officer: EVP, General Counsel & Sec. 2381 EXECUTIVE CENTER DRIVE, BOCA RATON FL 33431
Rakesh Sachdev officer: Chief Executive Officer 3050 SPRUCE STREET, ST LOUIS MO 63103
Pershing Square Capital Management, L.p. director, 10 percent owner 787 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
John David Tolbert officer: Chief Human Resources Officer 345 S HIGH STREET, STE 201, MUNCIE IN 47305