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Block (FRA:SQ3) Cyclically Adjusted FCF per Share : €0.36 (As of Mar. 2024)


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What is Block 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.

Block's adjusted free cash flow per share for the three months ended in Mar. 2024 was €0.660. 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 €0.36 for the trailing ten years ended in Mar. 2024.

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.

As of today (2024-05-14), Block's current stock price is €64.64. Block's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €0.36. Block's Cyclically Adjusted Price-to-FCF of today is 179.56.

During the past 12 years, the highest Cyclically Adjusted Price-to-FCF of Block was 264.31. The lowest was 83.38. And the median was 186.91.


Block Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Block'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.

Block Cyclically Adjusted FCF per Share Chart

Block 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 - - - - 0.30

Block 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 - - 0.45 0.30 0.36

Competitive Comparison of Block's Cyclically Adjusted FCF per Share

For the Software - Infrastructure subindustry, Block'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.


Block's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Block's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Block 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, Block'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)
=0.66/129.4194*129.4194
=0.660

Current CPI (Mar. 2024) = 129.4194.

Block Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.000 100.560 0.000
201409 0.000 100.428 0.000
201412 0.000 99.070 0.000
201503 -0.070 99.621 -0.091
201506 -0.031 100.684 -0.040
201509 0.010 100.392 0.013
201512 0.028 99.792 0.036
201603 -0.059 100.470 -0.076
201606 -0.072 101.688 -0.092
201609 0.135 101.861 0.172
201612 -0.016 101.863 -0.020
201703 0.096 102.862 0.121
201706 0.093 103.349 0.116
201709 0.074 104.136 0.092
201712 -0.020 104.011 -0.025
201803 0.087 105.290 0.107
201806 0.008 106.317 0.010
201809 0.061 106.507 0.074
201812 0.324 105.998 0.396
201903 0.030 107.251 0.036
201906 0.254 108.070 0.304
201909 0.435 108.329 0.520
201912 -0.142 108.420 -0.170
202003 0.198 108.902 0.235
202006 -0.612 108.767 -0.728
202009 0.666 109.815 0.785
202012 -0.256 109.897 -0.301
202103 -0.391 111.754 -0.453
202106 0.386 114.631 0.436
202109 0.634 115.734 0.709
202112 0.302 117.630 0.332
202203 0.316 121.301 0.337
202206 -0.259 125.017 -0.268
202209 -0.035 125.227 -0.036
202212 -0.006 125.222 -0.006
202303 0.393 127.348 0.399
202306 0.127 128.729 0.128
202309 0.695 129.860 0.693
202312 -1.225 129.419 -1.225
202403 0.660 129.419 0.660

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


Block  (FRA:SQ3) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=64.64/0.36
=179.56

* 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 12 years, the highest Cyclically Adjusted Price-to-FCF of Block was 264.31. The lowest was 83.38. And the median was 186.91.


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.


Block Cyclically Adjusted FCF per Share Related Terms

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


Block (FRA:SQ3) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Block Inc (FRA:SQ3) » Definitions » Cyclically Adjusted FCF per Share
Address
1455 Market Street, Suite 600, San Francisco, CA, USA, 94103
Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. In 2022, Square's payment volume was a little over $200 million.

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