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Guidewire Software (STU:0GS) Cyclically Adjusted FCF per Share : €0.97 (As of Jan. 2024)


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What is Guidewire Software 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.

Guidewire Software's adjusted free cash flow per share for the three months ended in Jan. 2024 was €0.704. 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 €0.97 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Guidewire Software's average Cyclically Adjusted FCF Growth Rate was 9.60% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was -0.90% 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 Guidewire Software was -0.90% per year. The lowest was -0.90% per year. And the median was -0.90% per year.

As of today (2024-05-20), Guidewire Software's current stock price is €112.60. Guidewire Software's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was €0.97. Guidewire Software's Cyclically Adjusted Price-to-FCF of today is 116.08.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Guidewire Software was 127.42. The lowest was 52.50. And the median was 100.48.


Guidewire Software Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Guidewire Software'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.

Guidewire Software Cyclically Adjusted FCF per Share Chart

Guidewire Software Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.88 0.88 1.01 0.91

Guidewire Software Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 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 0.85 0.79 0.91 0.90 0.97

Competitive Comparison of Guidewire Software's Cyclically Adjusted FCF per Share

For the Software - Application subindustry, Guidewire Software'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.


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

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

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



Guidewire Software 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, Guidewire Software'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)
=0.704/130.1244*130.1244
=0.704

Current CPI (Jan. 2024) = 130.1244.

Guidewire Software Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.204 100.023 0.265
201407 0.432 100.520 0.559
201410 -0.077 100.176 -0.100
201501 0.086 98.604 0.113
201504 0.331 99.824 0.431
201507 0.362 100.691 0.468
201510 -0.174 100.346 -0.226
201601 0.465 99.957 0.605
201604 0.271 100.947 0.349
201607 0.538 101.524 0.690
201610 -0.191 101.988 -0.244
201701 0.533 102.456 0.677
201704 0.263 103.167 0.332
201707 0.911 103.278 1.148
201710 -0.381 104.070 -0.476
201801 0.477 104.578 0.594
201804 0.197 105.708 0.243
201807 1.107 106.324 1.355
201810 -0.324 106.695 -0.395
201901 0.060 106.200 0.074
201904 0.080 107.818 0.097
201907 0.873 108.250 1.049
201910 -0.320 108.577 -0.384
202001 0.185 108.841 0.221
202004 -0.047 108.173 -0.057
202007 1.083 109.318 1.289
202010 -0.205 109.861 -0.243
202101 0.073 110.364 0.086
202104 -0.040 112.673 -0.046
202107 1.012 115.183 1.143
202110 -1.182 116.696 -1.318
202201 -0.096 118.619 -0.105
202204 -0.171 121.978 -0.182
202207 0.925 125.002 0.963
202210 -1.118 125.734 -1.157
202301 -0.029 126.223 -0.030
202304 -0.580 127.992 -0.590
202307 1.856 128.974 1.873
202310 -0.890 129.810 -0.892
202401 0.704 130.124 0.704

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


Guidewire Software  (STU:0GS) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=112.60/0.97
=116.08

* 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 Guidewire Software was 127.42. The lowest was 52.50. And the median was 100.48.


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.


Guidewire Software Cyclically Adjusted FCF per Share Related Terms

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


Guidewire Software (STU:0GS) Business Description

Industry
Traded in Other Exchanges
Address
970 Park Pl., Suite 200, San Mateo, CA, USA, 94403
Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.

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