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Applied Materials (STU:AP2) Cyclically Adjusted FCF per Share : €4.28 (As of Apr. 2024)


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What is Applied Materials 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.

Applied Materials's adjusted free cash flow per share for the three months ended in Apr. 2024 was €1.265. 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 €4.28 for the trailing ten years ended in Apr. 2024.

During the past 12 months, Applied Materials's average Cyclically Adjusted FCF Growth Rate was 22.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 24.50% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 20.60% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 15.00% 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 Applied Materials was 108.00% per year. The lowest was 1.30% per year. And the median was 17.15% per year.

As of today (2024-05-19), Applied Materials's current stock price is €194.76. Applied Materials's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 was €4.28. Applied Materials's Cyclically Adjusted Price-to-FCF of today is 45.50.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Applied Materials was 63.50. The lowest was 13.64. And the median was 29.24.


Applied Materials Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Applied Materials'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.

Applied Materials Cyclically Adjusted FCF per Share Chart

Applied Materials Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.70 1.84 2.28 3.13 3.90

Applied Materials Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
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 3.33 3.65 3.90 4.07 4.28

Competitive Comparison of Applied Materials's Cyclically Adjusted FCF per Share

For the Semiconductor Equipment & Materials subindustry, Applied Materials'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.


Applied Materials's Cyclically Adjusted Price-to-FCF Distribution in the Semiconductors Industry

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

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



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

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=1.265/131.7762*131.7762
=1.265

Current CPI (Apr. 2024) = 131.7762.

Applied Materials Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201407 0.311 100.520 0.408
201410 0.220 100.176 0.289
201501 0.008 98.604 0.011
201504 0.174 99.824 0.230
201507 0.210 100.691 0.275
201510 0.313 100.346 0.411
201601 0.111 99.957 0.146
201604 0.342 100.947 0.446
201607 0.771 101.524 1.001
201610 0.671 101.988 0.867
201701 0.628 102.456 0.808
201704 0.716 103.167 0.915
201707 1.038 103.278 1.324
201710 0.463 104.070 0.586
201801 0.967 104.578 1.218
201804 0.384 105.708 0.479
201807 0.426 106.324 0.528
201810 0.804 106.695 0.993
201901 0.636 106.200 0.789
201904 0.640 107.818 0.782
201907 0.661 108.250 0.805
201910 0.709 108.577 0.860
202001 0.860 108.841 1.041
202004 0.562 108.173 0.685
202007 0.736 109.318 0.887
202010 1.065 109.861 1.277
202101 1.154 110.364 1.378
202104 0.887 112.673 1.037
202107 1.428 115.183 1.634
202110 0.895 116.696 1.011
202201 2.478 118.619 2.753
202204 0.215 121.978 0.232
202207 1.424 125.002 1.501
202210 0.749 125.734 0.785
202301 2.168 126.223 2.263
202304 2.193 127.992 2.258
202307 2.496 128.974 2.550
202310 1.401 129.810 1.422
202401 2.299 130.124 2.328
202404 1.265 131.776 1.265

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


Applied Materials  (STU:AP2) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=194.76/4.28
=45.50

* 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 Applied Materials was 63.50. The lowest was 13.64. And the median was 29.24.


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.


Applied Materials Cyclically Adjusted FCF per Share Related Terms

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


Applied Materials (STU:AP2) Business Description

Industry
Address
3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039
Applied Materials is the largest semiconductor wafer fabrication equipment, or WFE, manufacturer in the world. Applied Materials has a broad portfolio spanning nearly every corner of the WFE ecosystem. Specifically, Applied Materials holds a market share leadership position in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.

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