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The Descartes Systems Group (TSX:DSG) Cyclically Adjusted Price-to-FCF : 69.19 (As of May. 17, 2024)


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What is The Descartes Systems Group Cyclically Adjusted Price-to-FCF?

As of today (2024-05-17), The Descartes Systems Group's current share price is C$132.84. The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was C$1.92. The Descartes Systems Group's Cyclically Adjusted Price-to-FCF for today is 69.19.

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

TSX:DSG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 41.54   Med: 59.87   Max: 110.09
Current: 69.28

During the past years, The Descartes Systems Group's highest Cyclically Adjusted Price-to-FCF was 110.09. The lowest was 41.54. And the median was 59.87.

TSX:DSG's Cyclically Adjusted Price-to-FCF is ranked worse than
76.22% of 677 companies
in the Software industry
Industry Median: 28.97 vs TSX:DSG: 69.28

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.

The Descartes Systems Group's adjusted free cash flow per share data for the three months ended in Jan. 2024 was C$0.773. 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$1.92 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Descartes Systems Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Descartes Systems Group'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.

The Descartes Systems Group Cyclically Adjusted Price-to-FCF Chart

The Descartes Systems Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.14 73.74 69.62 59.19 61.40

The Descartes Systems Group Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 59.19 62.31 57.29 53.62 61.40

Competitive Comparison of The Descartes Systems Group's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, The Descartes Systems Group'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.


The Descartes Systems Group's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, The Descartes Systems Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



The Descartes Systems Group 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.

The Descartes Systems Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=132.84/1.92
=69.19

* 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.

The Descartes Systems Group's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, The Descartes Systems Group's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.773/125.0724*125.0724
=0.773

Current CPI (Jan. 2024) = 125.0724.

The Descartes Systems Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.133 98.920 0.168
201407 0.239 99.315 0.301
201410 0.166 99.473 0.209
201501 0.196 98.209 0.250
201504 0.176 99.710 0.221
201507 0.193 100.579 0.240
201510 0.209 100.500 0.260
201601 0.286 100.184 0.357
201604 0.245 101.370 0.302
201607 0.255 101.844 0.313
201610 0.337 102.002 0.413
201701 0.321 102.318 0.392
201704 0.275 103.029 0.334
201707 0.268 103.029 0.325
201710 0.272 103.424 0.329
201801 0.295 104.056 0.355
201804 0.293 105.320 0.348
201807 0.291 106.110 0.343
201810 0.302 105.952 0.356
201901 0.335 105.557 0.397
201904 0.377 107.453 0.439
201907 0.413 108.243 0.477
201910 0.403 107.927 0.467
202001 0.388 108.085 0.449
202004 0.436 107.216 0.509
202007 0.520 108.401 0.600
202010 0.498 108.638 0.573
202101 0.526 109.192 0.603
202104 0.570 110.851 0.643
202107 0.661 112.431 0.735
202110 0.606 113.695 0.667
202201 0.651 114.801 0.709
202204 0.626 118.357 0.662
202207 0.668 120.964 0.691
202210 0.790 121.517 0.813
202301 0.759 121.596 0.781
202304 0.741 123.571 0.750
202307 0.759 124.914 0.760
202310 0.862 125.310 0.860
202401 0.773 125.072 0.773

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.


The Descartes Systems Group  (TSX:DSG) 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.


The Descartes Systems Group Cyclically Adjusted Price-to-FCF Related Terms

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The Descartes Systems Group (TSX:DSG) Business Description

Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
Executives
Edward James Gardner Senior Officer

The Descartes Systems Group (TSX:DSG) Headlines