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Globe Life (BSP:G1LL34) Cyclically Adjusted FCF per Share : R$3.50 (As of Mar. 2024)


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What is Globe Life 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.

Globe Life's adjusted free cash flow per share for the three months ended in Mar. 2024 was R$0.894. 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 R$3.50 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Globe Life's average Cyclically Adjusted FCF Growth Rate was 6.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 11.00% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 10.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 10.80% 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 Globe Life was 14.50% per year. The lowest was 2.00% per year. And the median was 9.90% per year.

As of today (2024-05-28), Globe Life's current stock price is R$21.04. Globe Life's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was R$3.50. Globe Life's Cyclically Adjusted Price-to-FCF of today is 6.01.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Globe Life was 12.31. The lowest was 4.22. And the median was 9.83.


Globe Life Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Globe Life'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.

Globe Life Cyclically Adjusted FCF per Share Chart

Globe Life 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 - 2.57 3.32 3.33 3.24

Globe Life Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.76 3.22 3.37 3.24 3.50

Competitive Comparison of Globe Life's Cyclically Adjusted FCF per Share

For the Insurance - Life subindustry, Globe Life'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.


Globe Life's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

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

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



Globe Life 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, Globe Life'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)
=0.894/131.7762*131.7762
=0.894

Current CPI (Mar. 2024) = 131.7762.

Globe Life Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.117 100.560 0.153
201409 0.195 100.428 0.256
201412 0.218 99.070 0.290
201503 0.334 99.621 0.442
201506 0.203 100.684 0.266
201509 0.401 100.392 0.526
201512 0.597 99.792 0.788
201603 0.505 100.470 0.662
201606 0.364 101.688 0.472
201609 0.485 101.861 0.627
201612 0.569 101.863 0.736
201703 0.593 102.862 0.760
201706 0.379 103.349 0.483
201709 0.451 104.136 0.571
201712 0.470 104.011 0.595
201803 0.520 105.290 0.651
201806 0.371 106.317 0.460
201809 0.558 106.507 0.690
201812 0.551 105.998 0.685
201903 0.712 107.251 0.875
201906 0.430 108.070 0.524
201909 0.622 108.329 0.757
201912 0.596 108.420 0.724
202003 0.748 108.902 0.905
202006 1.005 108.767 1.218
202009 0.758 109.815 0.910
202012 0.936 109.897 1.122
202103 0.958 111.754 1.130
202106 0.777 114.631 0.893
202109 0.905 115.734 1.030
202112 1.033 117.630 1.157
202203 0.968 121.301 1.052
202206 0.739 125.017 0.779
202209 0.937 125.227 0.986
202212 0.967 125.222 1.018
202303 1.248 127.348 1.291
202306 0.780 128.729 0.798
202309 0.711 129.860 0.721
202312 0.971 129.419 0.989
202403 0.894 131.776 0.894

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


Globe Life  (BSP:G1LL34) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=21.04/3.5
=6.01

* 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 Globe Life was 12.31. The lowest was 4.22. And the median was 9.83.


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.


Globe Life Cyclically Adjusted FCF per Share Related Terms

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


Globe Life (BSP:G1LL34) Business Description

Industry
Traded in Other Exchanges
Address
3700 South Stonebridge Drive, McKinney, TX, USA, 75070
Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.

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