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ARC Resources (TSX:ARX) Cyclically Adjusted Price-to-FCF : 31.02 (As of May. 23, 2024)


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What is ARC Resources Cyclically Adjusted Price-to-FCF?

As of today (2024-05-23), ARC Resources's current share price is C$25.44. ARC Resources's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was C$0.82. ARC Resources's Cyclically Adjusted Price-to-FCF for today is 31.02.

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

TSX:ARX' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.99   Med: 41.67   Max: 94.07
Current: 31.27

During the past years, ARC Resources's highest Cyclically Adjusted Price-to-FCF was 94.07. The lowest was 20.99. And the median was 41.67.

TSX:ARX's Cyclically Adjusted Price-to-FCF is ranked worse than
79.34% of 392 companies
in the Oil & Gas industry
Industry Median: 13.98 vs TSX:ARX: 31.27

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.

ARC Resources's adjusted free cash flow per share data for the three months ended in Mar. 2024 was C$0.232. 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 C$0.82 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


ARC Resources Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for ARC Resources'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.

ARC Resources Cyclically Adjusted Price-to-FCF Chart

ARC Resources 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 83.45 38.87 42.83 29.18 25.06

ARC Resources 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 22.66 25.60 28.61 25.06 29.33

Competitive Comparison of ARC Resources's Cyclically Adjusted Price-to-FCF

For the Oil & Gas E&P subindustry, ARC Resources'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.


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

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

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



ARC Resources 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=25.44/0.82
=31.02

* 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.

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

For example, ARC Resources'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)
=0.232/126.2576*126.2576
=0.232

Current CPI (Mar. 2024) = 126.2576.

ARC Resources Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.243 99.473 0.308
201409 -0.025 99.394 -0.032
201412 0.075 98.367 0.096
201503 0.044 99.789 0.056
201506 0.263 100.500 0.330
201509 0.002 100.421 0.003
201512 0.062 99.947 0.078
201603 0.225 101.054 0.281
201606 -0.180 102.002 -0.223
201609 0.011 101.765 0.014
201612 -0.048 101.449 -0.060
201703 -0.195 102.634 -0.240
201706 -0.078 103.029 -0.096
201709 -0.306 103.345 -0.374
201712 -0.146 103.345 -0.178
201803 -0.042 105.004 -0.051
201806 0.124 105.557 0.148
201809 0.178 105.636 0.213
201812 0.274 105.399 0.328
201903 -0.238 106.979 -0.281
201906 0.060 107.690 0.070
201909 -0.028 107.611 -0.033
201912 0.078 107.769 0.091
202003 0.043 107.927 0.050
202006 0.160 108.401 0.186
202009 0.349 108.164 0.407
202012 0.355 108.559 0.413
202103 0.405 110.298 0.464
202106 0.229 111.720 0.259
202109 0.481 112.905 0.538
202112 0.422 113.774 0.468
202203 0.618 117.646 0.663
202206 1.100 120.806 1.150
202209 1.124 120.648 1.176
202212 0.800 120.964 0.835
202303 0.090 122.702 0.093
202306 0.224 124.203 0.228
202309 0.345 125.230 0.348
202312 0.271 125.072 0.274
202403 0.232 126.258 0.232

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.


ARC Resources  (TSX:ARX) 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.


ARC Resources Cyclically Adjusted Price-to-FCF Related Terms

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


ARC Resources (TSX:ARX) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » ARC Resources Ltd (TSX:ARX) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
Address
308 - 4th Avenue South West, Suite 1200, Calgary, AB, CAN, T2P 0H7
ARC Resources Ltd is an independent energy company engaged in the acquisition, exploration, development, and production of conventional oil and natural gas in Western Canada. The company produces light, medium, and heavy crude, condensate, natural gas liquids, and natural gas.

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