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EQB (TSX:EQB) Cyclically Adjusted FCF per Share : C$4.62 (As of Jan. 2024)


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What is EQB 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.

EQB's adjusted free cash flow per share for the three months ended in Jan. 2024 was C$-2.022. 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 C$4.62 for the trailing ten years ended in Jan. 2024.

During the past 12 months, EQB's average Cyclically Adjusted FCF Growth Rate was 34.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 69.20% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 47.10% 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 EQB was 69.20% per year. The lowest was 4.60% per year. And the median was 41.90% per year.

As of today (2024-05-23), EQB's current stock price is C$82.12. EQB's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was C$4.62. EQB's Cyclically Adjusted Price-to-FCF of today is 17.77.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of EQB was 97.35. The lowest was 7.23. And the median was 19.71.


EQB Cyclically Adjusted FCF per Share Historical Data

The historical data trend for EQB'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.

EQB Cyclically Adjusted FCF per Share Chart

EQB Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.33 1.07 2.26 3.40 5.18

EQB Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Jan24
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 3.43 4.49 5.20 4.50 4.62

Competitive Comparison of EQB's Cyclically Adjusted FCF per Share

For the Banks - Regional subindustry, EQB'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.


EQB's Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

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

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



EQB 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, EQB's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=-2.022/125.0724*125.0724
=-2.022

Current CPI (Jan. 2024) = 125.0724.

EQB Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 -5.927 96.945 -7.647
201403 1.932 98.604 2.451
201406 -0.509 99.473 -0.640
201409 -1.549 99.394 -1.949
201412 -1.962 98.367 -2.495
201503 0.499 99.789 0.625
201506 12.275 100.500 15.276
201509 -6.724 100.421 -8.375
201512 1.044 99.947 1.306
201603 0.480 101.054 0.594
201606 -3.539 102.002 -4.339
201609 1.340 101.765 1.647
201612 0.641 101.449 0.790
201703 3.772 102.634 4.597
201706 6.783 103.029 8.234
201709 -2.478 103.345 -2.999
201712 -0.124 103.345 -0.150
201803 2.555 105.004 3.043
201806 3.331 105.557 3.947
201809 -0.854 105.636 -1.011
201812 -6.535 105.399 -7.755
201903 2.179 106.979 2.548
201906 3.297 107.690 3.829
201909 0.405 107.611 0.471
201912 7.513 107.769 8.719
202003 9.209 107.927 10.672
202006 -0.580 108.401 -0.669
202009 16.691 108.164 19.300
202012 -16.497 108.559 -19.006
202103 1.634 110.298 1.853
202106 7.028 111.720 7.868
202109 0.948 112.905 1.050
202112 9.364 113.774 10.294
202203 5.208 117.646 5.537
202206 -7.974 120.806 -8.256
202209 -6.250 120.648 -6.479
202212 7.217 120.964 7.462
202303 0.876 122.702 0.893
202306 -2.947 124.203 -2.968
202401 -2.022 125.072 -2.022

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


EQB  (TSX:EQB) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=82.12/4.62
=17.77

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of EQB was 97.35. The lowest was 7.23. And the median was 19.71.


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.


EQB Cyclically Adjusted FCF per Share Related Terms

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


EQB (TSX:EQB) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » EQB Inc (TSX:EQB) » Definitions » Cyclically Adjusted FCF per Share
Traded in Other Exchanges
Address
30 St. Clair Avenue West, Suite 700, Toronto, ON, CAN, M4V 3A1
EQB Inc operates through its wholly owned subsidiary, Equitable Bank, Canada's Challenger BankTM. It serves Canadians through two business lines, Personal Banking and Business Banking. The company differentiates by providing a host of challenger bank deposit services, alternative single-family lending, reverse mortgage lending, insurance lending, Specialized finance, Commercial finance group, Equipment financing, credit union services and trust services.
Executives
Andrew Moor Senior Officer

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