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Ribbon Communications (STU:NU42) Cyclically Adjusted FCF per Share : €0.12 (As of Sep. 2024)


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What is Ribbon Communications Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

Ribbon Communications's adjusted free cash flow per share for the three months ended in Sep. 2024 was €-0.123. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is €0.12 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Ribbon Communications's average Cyclically Adjusted FCF Growth Rate was -26.30% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 26.00% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 37.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Ribbon Communications was 71.00% per year. The lowest was -5.90% per year. And the median was 39.40% per year.

As of today (2025-01-19), Ribbon Communications's current stock price is €3.84. Ribbon Communications's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2024 was €0.12. Ribbon Communications's Cyclically Adjusted Price-to-FCF of today is 32.00.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Ribbon Communications was 954.00. The lowest was 10.12. And the median was 71.00.


Ribbon Communications Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Ribbon Communications's Cyclically Adjusted FCF per Share 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.

Ribbon Communications Cyclically Adjusted FCF per Share Chart

Ribbon Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 0.18

Ribbon Communications Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cyclically Adjusted FCF per Share 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 0.18 0.18 0.15 0.15 0.12

Competitive Comparison of Ribbon Communications's Cyclically Adjusted FCF per Share

For the Telecom Services subindustry, Ribbon Communications'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.


Ribbon Communications's Cyclically Adjusted Price-to-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Ribbon Communications's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Ribbon Communications Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

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. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

For example, Ribbon Communications's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=-0.123/133.0289*133.0289
=-0.123

Current CPI (Sep. 2024) = 133.0289.

Ribbon Communications Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 0.005 99.070 0.007
201503 -0.374 99.621 -0.499
201506 0.022 100.684 0.029
201509 0.253 100.392 0.335
201512 0.310 99.792 0.413
201603 0.043 100.470 0.057
201606 0.076 101.688 0.099
201609 -0.003 101.861 -0.004
201612 0.157 101.863 0.205
201703 0.050 102.862 0.065
201706 -0.042 103.349 -0.054
201709 0.093 104.136 0.119
201712 -0.017 104.011 -0.022
201803 0.012 105.290 0.015
201806 -0.232 106.317 -0.290
201809 -0.027 106.507 -0.034
201812 0.099 105.998 0.124
201903 0.129 107.251 0.160
201906 0.057 108.070 0.070
201909 -0.073 108.329 -0.090
201912 0.251 108.420 0.308
202003 0.254 108.902 0.310
202006 -0.074 108.767 -0.091
202009 0.138 109.815 0.167
202012 0.138 109.897 0.167
202103 -0.067 111.754 -0.080
202106 0.049 114.631 0.057
202109 -0.022 115.734 -0.025
202112 0.050 117.630 0.057
202203 0.070 121.301 0.077
202206 -0.267 125.017 -0.284
202209 -0.156 125.227 -0.166
202212 0.087 125.222 0.092
202303 0.048 127.348 0.050
202306 -0.023 128.729 -0.024
202309 -0.077 129.860 -0.079
202312 0.092 129.419 0.095
202403 0.056 131.776 0.057
202406 -0.069 132.554 -0.069
202409 -0.123 133.029 -0.123

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Ribbon Communications  (STU:NU42) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

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.

Ribbon Communications's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=3.84/0.12
=32.00

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Ribbon Communications was 954.00. The lowest was 10.12. And the median was 71.00.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Ribbon Communications Cyclically Adjusted FCF per Share Related Terms

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


Ribbon Communications Business Description

Traded in Other Exchanges
Address
6500 Chase Oaks Boulevard, Suite 100, Plano, TX, USA, 75023
Ribbon Communications Inc provides network solutions to service providers and enterprises. It enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. It has two separate lines of business; the Cloud and Edge segment, and the IP Optical Networks segment. The majority of the revenue for the company is generated from its Cloud and Edge segment that provides secure and reliable software and hardware products, solutions, and services for VoIP communications, Voice Over LTE among others to service providers and enterprise customers. The company generates majority of its revenue from United States.

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