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Marathon Oil (STU:USS) Cyclically Adjusted FCF per Share : €0.94 (As of Mar. 2024)


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What is Marathon Oil 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.

Marathon Oil's adjusted free cash flow per share for the three months ended in Mar. 2024 was €0.246. 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 €0.94 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Marathon Oil's average Cyclically Adjusted FCF Growth Rate was 18.40% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 29.70% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 4.70% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was -10.20% 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 Marathon Oil was 67.70% per year. The lowest was -32.50% per year. And the median was -0.70% per year.

As of today (2024-05-20), Marathon Oil's current stock price is €24.045. Marathon Oil's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €0.94. Marathon Oil's Cyclically Adjusted Price-to-FCF of today is 25.58.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Marathon Oil was 130.20. The lowest was 3.84. And the median was 18.44.


Marathon Oil Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Marathon Oil'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.

Marathon Oil Cyclically Adjusted FCF per Share Chart

Marathon Oil 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 0.75 0.39 0.18 0.78 0.98

Marathon Oil 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 0.80 0.92 0.96 0.98 0.94

Competitive Comparison of Marathon Oil's Cyclically Adjusted FCF per Share

For the Oil & Gas E&P subindustry, Marathon Oil'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.


Marathon Oil's Cyclically Adjusted Price-to-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Marathon Oil's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Marathon Oil 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, Marathon Oil'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)
=0.246/131.7762*131.7762
=0.246

Current CPI (Mar. 2024) = 131.7762.

Marathon Oil Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.150 100.560 -0.197
201409 0.418 100.428 0.548
201412 -0.437 99.070 -0.581
201503 -1.565 99.621 -2.070
201506 -0.605 100.684 -0.792
201509 -0.174 100.392 -0.228
201512 -0.236 99.792 -0.312
201603 -0.451 100.470 -0.592
201606 -0.110 101.688 -0.143
201609 0.154 101.861 0.199
201612 0.291 101.863 0.376
201703 0.345 102.862 0.442
201706 -0.023 103.349 -0.029
201709 0.021 104.136 0.027
201712 -0.167 104.011 -0.212
201803 -0.012 105.290 -0.015
201806 0.129 106.317 0.160
201809 0.196 106.507 0.243
201812 0.181 105.998 0.225
201903 -0.108 107.251 -0.133
201906 0.163 108.070 0.199
201909 0.073 108.329 0.089
201912 0.094 108.420 0.114
202003 0.092 108.902 0.111
202006 -0.356 108.767 -0.431
202009 0.216 109.815 0.259
202012 0.171 109.897 0.205
202103 0.440 111.754 0.519
202106 0.401 114.631 0.461
202109 0.568 115.734 0.647
202112 1.007 117.630 1.128
202203 0.912 121.301 0.991
202206 1.775 125.017 1.871
202209 1.692 125.227 1.780
202212 1.129 125.222 1.188
202303 0.392 127.348 0.406
202306 0.767 128.729 0.785
202309 0.889 129.860 0.902
202312 1.109 129.419 1.129
202403 0.246 131.776 0.246

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


Marathon Oil  (STU:USS) 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=24.045/0.94
=25.58

* 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 Marathon Oil was 130.20. The lowest was 3.84. And the median was 18.44.


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.


Marathon Oil Cyclically Adjusted FCF per Share Related Terms

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


Marathon Oil (STU:USS) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Marathon Oil Corp (STU:USS) » Definitions » Cyclically Adjusted FCF per Share
Traded in Other Exchanges
Address
990 Town and Country Boulevard, Houston, TX, USA, 77024-2217
Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 343 thousand barrels of oil equivalent per day in 2022 at a ratio of 70% oil and NGLs and 30% natural gas.

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