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Solvay (XBRU:SOLB) Cyclically Adjusted Price-to-FCF : 3.63 (As of May. 14, 2024)


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What is Solvay Cyclically Adjusted Price-to-FCF?

As of today (2024-05-14), Solvay's current share price is €34.31. Solvay's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €9.46. Solvay's Cyclically Adjusted Price-to-FCF for today is 3.63.

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

XBRU:SOLB' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.75   Med: 2.71   Max: 4.23
Current: 3.56

During the past years, Solvay's highest Cyclically Adjusted Price-to-FCF was 4.23. The lowest was 1.75. And the median was 2.71.

XBRU:SOLB's Cyclically Adjusted Price-to-FCF is ranked better than
96.01% of 577 companies
in the Chemicals industry
Industry Median: 26.07 vs XBRU:SOLB: 3.56

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.

Solvay's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €0.904. 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 €9.46 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Solvay Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Solvay'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.

Solvay Cyclically Adjusted Price-to-FCF Chart

Solvay 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 3.06 2.74 2.56 2.12 3.00

Solvay 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 2.32 2.16 2.20 3.00 2.67

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

For the Chemicals subindustry, Solvay'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.


Solvay's Cyclically Adjusted Price-to-FCF Distribution in the Chemicals Industry

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

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



Solvay 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=34.31/9.46
=3.63

* 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.

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

For example, Solvay'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)
=0.904/128.2922*128.2922
=0.904

Current CPI (Mar. 2024) = 128.2922.

Solvay Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.016 99.482 1.310
201409 1.388 99.195 1.795
201412 7.375 99.086 9.549
201503 -4.163 99.423 -5.372
201506 2.026 100.107 2.596
201509 2.018 100.245 2.583
201512 3.056 100.572 3.898
201603 0.310 101.653 0.391
201606 1.323 102.267 1.660
201609 2.704 102.118 3.397
201612 3.449 102.614 4.312
201703 0.741 103.972 0.914
201706 0.855 103.902 1.056
201709 2.226 104.170 2.741
201712 3.467 104.804 4.244
201803 1.309 105.419 1.593
201806 0.597 106.063 0.722
201809 1.706 106.618 2.053
201812 4.948 107.252 5.919
201903 -0.097 107.876 -0.115
201906 3.490 107.896 4.150
201909 3.342 107.470 3.990
201912 2.385 108.065 2.831
202003 -2.185 108.550 -2.582
202006 3.357 108.540 3.968
202009 3.939 108.441 4.660
202012 1.764 108.511 2.086
202103 2.175 109.522 2.548
202106 2.060 110.305 2.396
202109 2.962 111.543 3.407
202112 1.117 114.705 1.249
202203 2.493 118.620 2.696
202206 3.060 120.948 3.246
202209 2.907 124.120 3.005
202212 2.078 126.578 2.106
202303 1.324 126.528 1.342
202306 4.925 125.973 5.016
202309 3.211 127.083 3.242
202312 -0.922 128.292 -0.922
202403 0.904 128.292 0.904

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.


Solvay  (XBRU:SOLB) 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.


Solvay Cyclically Adjusted Price-to-FCF Related Terms

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


Solvay (XBRU:SOLB) Business Description

Industry
Address
Rue De Ransbeek, 310, Brussels, BEL, B-1120
Solvay is a Belgium-based producer of chemicals, plastics, and composites. The company has a top-three market position for nearly all of its products. Key business segments include materials, chemicals, and solutions. High-value products include aerospace composites and specialty polymers while traditional chemical products include soda ash and hydrogen peroxide. Geographical exposure is relatively balanced, with Europe, North America, and Asia each contributing a third of sales.

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