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SLM (FRA:SM1) Cyclically Adjusted Price-to-FCF : (As of Jun. 09, 2024)


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What is SLM Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


SLM Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for SLM's Cyclically Adjusted Price-to-FCF 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.

SLM Cyclically Adjusted Price-to-FCF Chart

SLM Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 31.42 - - -

SLM Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF 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 - - - - -

Competitive Comparison of SLM's Cyclically Adjusted Price-to-FCF

For the Credit Services subindustry, SLM'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.


SLM's Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

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

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



SLM Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

SLM's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, SLM'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)
=-0.315/131.7762*131.7762
=-0.315

Current CPI (Mar. 2024) = 131.7762.

SLM Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.194 100.560 -0.254
201409 -0.011 100.428 -0.014
201412 -0.373 99.070 -0.496
201503 -0.041 99.621 -0.054
201506 -0.133 100.684 -0.174
201509 -0.093 100.392 -0.122
201512 0.093 99.792 0.123
201603 -0.104 100.470 -0.136
201606 -0.122 101.688 -0.158
201609 -0.068 101.861 -0.088
201612 -0.125 101.863 -0.162
201703 -0.020 102.862 -0.026
201706 -0.204 103.349 -0.260
201709 -0.033 104.136 -0.042
201712 -0.085 104.011 -0.108
201803 -0.026 105.290 -0.033
201806 -0.127 106.317 -0.157
201809 -0.025 106.507 -0.031
201812 -0.021 105.998 -0.026
201903 0.034 107.251 0.042
201906 -0.163 108.070 -0.199
201909 -0.031 108.329 -0.038
201912 0.131 108.420 0.159
202003 0.317 108.902 0.384
202006 -0.489 108.767 -0.592
202009 -0.330 109.815 -0.396
202012 0.057 109.897 0.068
202103 0.105 111.754 0.124
202106 -0.591 114.631 -0.679
202109 0.237 115.734 0.270
202112 0.138 117.630 0.155
202203 0.203 121.301 0.221
202206 -0.216 125.017 -0.228
202209 0.013 125.227 0.014
202212 -0.003 125.222 -0.003
202303 0.034 127.348 0.035
202306 -0.260 128.729 -0.266
202309 -0.243 129.860 -0.247
202312 -0.110 129.419 -0.112
202403 -0.315 131.776 -0.315

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


SLM  (FRA:SM1) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


SLM Cyclically Adjusted Price-to-FCF Related Terms

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


SLM (FRA:SM1) Business Description

Industry
Traded in Other Exchanges
Address
300 Continental Drive, Newark, DE, USA, 19713
SLM Corp is the largest student lender in the country. It makes and holds student loans through the guaranteed Federal Family Education Loan Program as well as through private channels. It also engages in debt-management operations, including accounts receivable and collections services, and runs college savings programs.

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