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Sappi (JSE:SAP) Cyclically Adjusted Price-to-FCF : 17.06 (As of May. 22, 2024)


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What is Sappi Cyclically Adjusted Price-to-FCF?

As of today (2024-05-22), Sappi's current share price is R56.81. Sappi's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was R3.33. Sappi's Cyclically Adjusted Price-to-FCF for today is 17.06.

The historical rank and industry rank for Sappi's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

JSE:SAP' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 2.13   Med: 12.17   Max: 41.42
Current: 16.42

During the past years, Sappi's highest Cyclically Adjusted Price-to-FCF was 41.42. The lowest was 2.13. And the median was 12.17.

JSE:SAP's Cyclically Adjusted Price-to-FCF is ranked better than
52.89% of 121 companies
in the Forest Products industry
Industry Median: 17 vs JSE:SAP: 16.42

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.

Sappi's adjusted free cash flow per share data for the three months ended in Mar. 2024 was R-7.592. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R3.33 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sappi Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Sappi'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.

Sappi Cyclically Adjusted Price-to-FCF Chart

Sappi Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.08 13.03 31.73 18.11 10.75

Sappi 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 13.38 9.25 10.75 9.99 15.09

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

For the Paper & Paper Products subindustry, Sappi'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.


Sappi's Cyclically Adjusted Price-to-FCF Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sappi's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Sappi 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.

Sappi's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=56.81/3.33
=17.06

* 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.

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

For example, Sappi'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)
=-7.592/155.4180*155.4180
=-7.592

Current CPI (Mar. 2024) = 155.4180.

Sappi Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.446 95.813 -0.723
201409 3.777 96.794 6.065
201412 -2.651 96.794 -4.257
201503 1.683 98.538 2.655
201506 0.554 100.173 0.860
201509 4.059 101.154 6.236
201512 -0.644 101.808 -0.983
201603 2.670 104.969 3.953
201606 2.222 106.713 3.236
201609 4.086 107.694 5.897
201612 0.432 109.002 0.616
201703 0.401 111.400 0.559
201706 0.891 112.054 1.236
201709 1.250 112.926 1.720
201712 -0.215 113.907 -0.293
201803 -2.285 115.542 -3.074
201806 -0.992 116.959 -1.318
201809 0.669 118.376 0.878
201812 -0.104 118.921 -0.136
201903 -3.876 120.774 -4.988
201906 -0.454 122.191 -0.577
201909 4.670 123.281 5.887
201912 -3.094 123.717 -3.887
202003 0.122 125.679 0.151
202006 -1.972 124.807 -2.456
202009 2.586 126.878 3.168
202012 0.191 127.467 0.233
202103 -1.413 129.628 -1.694
202106 1.151 131.113 1.364
202109 0.864 133.273 1.008
202112 -0.026 135.029 -0.030
202203 2.583 137.594 2.918
202206 4.410 140.835 4.867
202209 6.668 143.671 7.213
202212 0.774 145.156 0.829
202303 1.505 147.586 1.585
202306 2.437 148.802 2.545
202309 1.313 151.502 1.347
202312 -1.661 152.718 -1.690
202403 -7.592 155.418 -7.592

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.


Sappi  (JSE:SAP) 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.


Sappi Cyclically Adjusted Price-to-FCF Related Terms

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


Sappi (JSE:SAP) Business Description

Industry
Traded in Other Exchanges
Address
108 Oxford Road, Rosebank, Houghton Estate, Johannesburg, GT, ZAF, 2198
Sappi Ltd produces and sells a variety of paper and paper-related products. The products and services include Dissolving pulp, Graphic papers, Packaging and speciality papers, Casting and release papers, Biomaterials and Bio-energy. The company organizes itself into three primary segments based on geography: North America, Europe, and Southern Africa. More of the revenue comes from Europe than any other geography.