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Shell (XPRA:SHELL) Cyclically Adjusted Price-to-FCF : (As of May. 17, 2024)


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What is Shell Cyclically Adjusted Price-to-FCF?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted Price-to-FCF for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


Shell Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Shell'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.

Shell Cyclically Adjusted Price-to-FCF Chart

Shell 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 20.74 10.31 11.27 12.16 10.94

Shell 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 11.66 11.18 12.01 10.94 10.95

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

For the Oil & Gas Integrated subindustry, Shell'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.


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

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

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



Shell 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.

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

For example, Shell'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)
=33.449/131.6000*131.6000
=33.449

Current CPI (Mar. 2024) = 131.6000.

Shell Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 2.347 99.800 3.095
201409 16.982 100.000 22.348
201412 2.766 99.900 3.644
201503 3.531 99.600 4.665
201506 -0.591 100.100 -0.777
201509 18.186 100.200 23.885
201512 -7.265 100.400 -9.523
201603 -15.713 100.400 -20.596
201606 -10.486 101.000 -13.663
201609 9.542 101.500 12.372
201612 10.851 102.200 13.973
201703 16.000 102.700 20.502
201706 15.866 103.500 20.174
201709 6.741 104.300 8.505
201712 3.668 105.000 4.597
201803 11.525 105.100 14.431
201806 11.135 105.900 13.837
201809 16.540 106.600 20.419
201812 40.712 107.100 50.025
201903 9.708 107.000 11.940
201906 16.350 107.900 19.941
201909 18.240 108.400 22.144
201912 10.264 108.500 12.449
202003 32.554 108.600 39.448
202006 -2.657 108.800 -3.214
202009 19.492 109.200 23.490
202012 3.004 109.400 3.614
202103 12.386 109.700 14.859
202106 22.612 111.400 26.712
202109 31.570 112.400 36.963
202112 5.576 114.700 6.398
202203 31.339 116.500 35.401
202206 37.279 120.500 40.713
202209 24.576 122.300 26.445
202212 51.425 125.300 54.011
202303 25.342 126.800 26.301
202306 33.539 129.400 34.109
202309 23.971 130.100 24.247
202312 18.989 130.500 19.149
202403 33.449 131.600 33.449

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.


Shell  (XPRA:SHELL) 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.


Shell Cyclically Adjusted Price-to-FCF Related Terms

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Shell (XPRA:SHELL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Shell PLC (XPRA:SHELL) » Definitions » Cyclically Adjusted Price-to-FCF
Address
Shell Centre, London, GBR, SE1 7NA
Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.

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