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Telefonaktiebolaget L M Ericsson (OSTO:ERIC B) Cyclically Adjusted Price-to-FCF : 14.73 (As of May. 24, 2024)


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What is Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF?

As of today (2024-05-24), Telefonaktiebolaget L M Ericsson's current share price is kr63.62. Telefonaktiebolaget L M Ericsson's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was kr4.32. Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF for today is 14.73.

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

OSTO:ERIC B' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 10.78   Med: 17.76   Max: 38.06
Current: 14.74

During the past years, Telefonaktiebolaget L M Ericsson's highest Cyclically Adjusted Price-to-FCF was 38.06. The lowest was 10.78. And the median was 17.76.

OSTO:ERIC B's Cyclically Adjusted Price-to-FCF is ranked better than
76.77% of 930 companies
in the Hardware industry
Industry Median: 30.555 vs OSTO:ERIC B: 14.74

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.

Telefonaktiebolaget L M Ericsson's adjusted free cash flow per share data for the three months ended in Mar. 2024 was kr1.276. 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 kr4.32 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson'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.

Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF Chart

Telefonaktiebolaget L M Ericsson 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 26.72 31.96 24.52 12.84 13.99

Telefonaktiebolaget L M Ericsson Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 12.84 12.78 11.63 13.99 13.35

Competitive Comparison of Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson'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.


Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF falls into.



Telefonaktiebolaget L M Ericsson 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.

Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=63.62/4.32
=14.73

* 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.

Telefonaktiebolaget L M Ericsson's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Telefonaktiebolaget L M Ericsson's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.276/132.2054*132.2054
=1.276

Current CPI (Mar. 2024) = 132.2054.

Telefonaktiebolaget L M Ericsson Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.168 100.432 0.221
201409 -0.893 100.161 -1.179
201412 1.849 100.225 2.439
201503 -2.613 99.950 -3.456
201506 -0.058 99.995 -0.077
201509 -0.374 100.228 -0.493
201512 5.134 100.276 6.769
201603 -1.535 100.751 -2.014
201606 -1.026 101.019 -1.343
201609 -1.389 101.138 -1.816
201612 4.949 102.022 6.413
201703 -1.033 102.022 -1.339
201706 -0.401 102.752 -0.516
201709 -0.266 103.279 -0.341
201712 3.020 103.793 3.847
201803 0.139 103.962 0.177
201806 0.050 104.875 0.063
201809 0.241 105.679 0.301
201812 0.914 105.912 1.141
201903 1.201 105.886 1.500
201906 0.625 106.742 0.774
201909 1.637 107.214 2.019
201912 -0.395 107.766 -0.485
202003 0.882 106.563 1.094
202006 1.175 107.498 1.445
202009 1.246 107.635 1.530
202012 3.796 108.296 4.634
202103 0.627 108.360 0.765
202106 1.401 108.928 1.700
202109 4.049 110.338 4.851
202112 4.260 112.486 5.007
202203 -0.323 114.825 -0.372
202206 1.480 118.384 1.653
202209 0.940 122.296 1.016
202212 5.302 126.365 5.547
202303 -2.206 127.042 -2.296
202306 -1.274 129.407 -1.302
202309 0.030 130.224 0.030
202312 3.967 131.912 3.976
202403 1.276 132.205 1.276

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.


Telefonaktiebolaget L M Ericsson  (OSTO:ERIC B) 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.


Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF Related Terms

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


Telefonaktiebolaget L M Ericsson (OSTO:ERIC B) Business Description

Address
Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83
Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.

Telefonaktiebolaget L M Ericsson (OSTO:ERIC B) Headlines

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