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Ingersoll Rand (Ingersoll Rand) Cyclically Adjusted Price-to-FCF : 58.81 (As of Apr. 27, 2024)


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What is Ingersoll Rand Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Ingersoll Rand's current share price is $93.50. Ingersoll Rand's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 was $1.59. Ingersoll Rand's Cyclically Adjusted Price-to-FCF for today is 58.81.

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

IR' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 47.04   Med: 56.84   Max: 59.72
Current: 57.8

During the past 10 years, Ingersoll Rand's highest Cyclically Adjusted Price-to-FCF was 59.72. The lowest was 47.04. And the median was 56.84.

IR's Cyclically Adjusted Price-to-FCF is ranked worse than
69.59% of 1016 companies
in the Industrial Products industry
Industry Median: 32.505 vs IR: 57.80

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.

Ingersoll Rand's adjusted free cash flow per share data of for the fiscal year that ended in Dec23 was $3.110. 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 $1.59 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ingersoll Rand Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Ingersoll Rand'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.

Ingersoll Rand Cyclically Adjusted Price-to-FCF Chart

Ingersoll Rand 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 - - - - 48.58

Ingersoll Rand 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 - - - - 48.58

Competitive Comparison of Ingersoll Rand's Cyclically Adjusted Price-to-FCF

For the Specialty Industrial Machinery subindustry, Ingersoll Rand'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.


Ingersoll Rand's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ingersoll Rand's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Ingersoll Rand 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.

Ingersoll Rand's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=93.50/1.59
=58.81

* 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.

Ingersoll Rand's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Ingersoll Rand's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=3.11/129.4194*129.4194
=3.110

Current CPI (Dec23) = 129.4194.

Ingersoll Rand Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 0.360 99.070 0.470
201512 0.533 99.792 0.691
201612 0.481 101.863 0.611
201712 0.763 104.011 0.949
201812 1.876 105.998 2.291
201912 1.462 108.420 1.745
202012 2.279 109.897 2.684
202112 1.309 117.630 1.440
202212 1.867 125.222 1.930
202312 3.110 129.419 3.110

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.


Ingersoll Rand  (NYSE:IR) 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.


Ingersoll Rand Cyclically Adjusted Price-to-FCF Related Terms

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


Ingersoll Rand (Ingersoll Rand) Business Description

Traded in Other Exchanges
Address
525 Harbour Place Drive, Suite 600, Davidson, NC, USA, 28036
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment. The firm's portfolio consists of two business lines: industrial technologies and services and precision and science technologies. Ingersoll Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, and fluid management. Ingersoll Rand generated roughly $5.9 billion in revenue in 2022.
Executives
Andrew R Schiesl officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Joanna Sohovich director 123 MAIN STREET, BRISTOL CT 06010
Julie Schertell director 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Santiago Arias Duval officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Vikram Kini officer: Senior Vice President and CFO C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Matthew J Emmerich officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Vicente Reynal director, officer: Chief Executive Officer C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Kathleen M. Keene officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Gary E Gillespie officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Michael J Scheske officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Jennifer Hartsock director C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Viseras Enrique Minarro officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Nicholas J Kendall-jones officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Michael Stubblefield director C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Mark P Stevenson director 850 LINCOLN CENTRE DRIVE, FOSTER CITY CA 94404