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Transocean (Transocean) Cyclically Adjusted Price-to-FCF : 6.60 (As of Apr. 28, 2024)


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What is Transocean Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Transocean's current share price is $5.87. Transocean's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.89. Transocean's Cyclically Adjusted Price-to-FCF for today is 6.60.

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

RIG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 0.47   Med: 3.24   Max: 13.76
Current: 6.61

During the past years, Transocean's highest Cyclically Adjusted Price-to-FCF was 13.76. The lowest was 0.47. And the median was 3.24.

RIG's Cyclically Adjusted Price-to-FCF is ranked better than
78.06% of 392 companies
in the Oil & Gas industry
Industry Median: 14.585 vs RIG: 6.61

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.

Transocean's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $-0.151. 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 $0.89 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Transocean Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Transocean'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.

Transocean Cyclically Adjusted Price-to-FCF Chart

Transocean 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 3.22 1.69 2.31 5.60 7.15

Transocean 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 5.60 6.91 7.66 9.63 7.15

Competitive Comparison of Transocean's Cyclically Adjusted Price-to-FCF

For the Oil & Gas Drilling subindustry, Transocean'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.


Transocean's Cyclically Adjusted Price-to-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Transocean's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Transocean 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=5.87/0.89
=6.60

* 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.

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

For example, Transocean'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)
=-0.151/106.4611*106.4611
=-0.151

Current CPI (Dec. 2023) = 106.4611.

Transocean Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -2.756 101.224 -2.899
201406 0.787 101.517 0.825
201409 1.428 101.247 1.502
201412 0.685 100.704 0.724
201503 0.895 100.339 0.950
201506 3.074 100.464 3.258
201509 -0.802 99.785 -0.856
201512 0.813 99.386 0.871
201603 0.723 99.475 0.774
201606 -0.688 100.088 -0.732
201609 0.532 99.604 0.569
201612 1.153 99.380 1.235
201703 0.151 100.040 0.161
201706 0.581 100.285 0.617
201709 0.650 100.254 0.690
201712 0.340 100.213 0.361
201803 0.114 100.836 0.120
201806 -0.078 101.435 -0.082
201809 0.359 101.246 0.377
201812 0.380 100.906 0.401
201903 -0.169 101.571 -0.177
201906 0.109 102.044 0.114
201909 -0.049 101.396 -0.051
201912 0.031 101.063 0.033
202003 -0.252 101.048 -0.266
202006 0.067 100.743 0.071
202009 0.023 100.585 0.024
202012 0.376 100.241 0.399
202103 0.060 100.800 0.063
202106 0.180 101.352 0.189
202109 0.159 101.533 0.167
202112 0.173 101.776 0.181
202203 -0.161 103.205 -0.166
202206 -0.107 104.783 -0.109
202209 0.200 104.835 0.203
202212 -0.318 104.666 -0.323
202303 -0.176 106.245 -0.176
202306 0.106 106.576 0.106
202309 -0.121 106.570 -0.121
202312 -0.151 106.461 -0.151

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.


Transocean  (NYSE:RIG) 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.


Transocean Cyclically Adjusted Price-to-FCF Related Terms

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


Transocean (Transocean) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Transocean Ltd (NYSE:RIG) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
Turmstrasse 30, Steinhausen, CHE, 6312
Transocean Ltd. is a international provider of offshore contract drilling services for oil and gas wells. Its segment involves contracting mobile offshore drilling rigs, related equipment and work crews to drill oil and gas wells.
Executives
David A Tonnel officer: SVP and Corporate Controller 4 GREENWAY PLAZA, HOUSTON TX 77046
Mark-anthony Lovell Mey officer: EVP & CFO 15835 PARK TEN PLACE DRIVE, HOUSTON TX 77084
Dell'osso Domenic J Jr director 6100 N. WESTERN AVE., OKLAHOMA CITY OK 73118
Chad C Deaton director 12001 N HOUSTON ROSSLYN, HOUSTON TX 77086
Keelan Adamson officer: President & COO 4 GREENWAY PLAZA, HOUSTON TX 77046
Chang Vanessa C L director P O BOX 800, 2244 WALNUT GROVE, ROSEMEAD CA 91770
Frederik Wilhelm Mohn director TRANSOCEAN LTD, TURMSTRASSE 30, STEINHAUSEN V8 6312
Erestroika director TRANSOCEAN LTD, TURMSTRASSE 30, STEINHAUSEN V8 6312
Jeremy D Thigpen director, officer: CEO
Howard E Davis officer: EVP, CAO & CIO 4 GREENWAY PLAZA, HOUSTON TX 77046
Brady K Long officer: EVP & General Counsel 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
De Saint Victor Diane director TURMSTRASSE 30, STEINHAUSEN V8 6312
Margareth Oevrum director FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Edward R Muller director C/O AEROVIRONMENT, INC., 900 INNOVATORS WAY, SIMI VALLEY CA 93065
Vincent J Intrieri director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160