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Lamb Weston Holdings (Lamb Weston Holdings) Cyclically Adjusted FCF per Share : $1.94 (As of Feb. 2024)


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What is Lamb Weston Holdings Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

Lamb Weston Holdings's adjusted free cash flow per share data for the fiscal year that ended in May. 2023 was $0.742. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $1.94 for the trailing ten years ended in May. 2023.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

As of today (2024-04-27), Lamb Weston Holdings's current stock price is $ 83.85. Lamb Weston Holdings's Cyclically Adjusted FCF per Share for the fiscal year that ended in May. 2023 was $1.94. Lamb Weston Holdings's Cyclically Adjusted Price-to-FCF of today is 43.22.

During the past 10 years, the highest Cyclically Adjusted Price-to-FCF of Lamb Weston Holdings was 59.25. The lowest was 43.08. And the median was 58.10.


Lamb Weston Holdings Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Lamb Weston Holdings's Cyclically Adjusted FCF per Share 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.

Lamb Weston Holdings Cyclically Adjusted FCF per Share Chart

Lamb Weston Holdings Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 1.94

Lamb Weston Holdings Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted FCF per Share 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 - 1.94 - - -

Competitive Comparison of Lamb Weston Holdings's Cyclically Adjusted FCF per Share

For the Packaged Foods subindustry, Lamb Weston Holdings'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.


Lamb Weston Holdings's Cyclically Adjusted Price-to-FCF Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Lamb Weston Holdings Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and 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.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

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. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

For example, Lamb Weston Holdings's adjusted Free Cash Flow per Share data for the fiscal year that ended in May. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share /CPI of May. 2023 (Change)*Current CPI (May. 2023)
=0.742/128.3144*128.3144
=0.742

Current CPI (May. 2023) = 128.3144.

Lamb Weston Holdings Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 1.310 100.373 1.675
201505 1.633 100.333 2.088
201605 1.571 101.355 1.989
201705 1.088 103.256 1.352
201805 1.186 106.148 1.434
201905 2.354 108.048 2.796
202005 2.762 108.175 3.276
202105 2.757 113.576 3.115
202205 0.881 123.323 0.917
202305 0.742 128.314 0.742

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Lamb Weston Holdings  (NYSE:LW) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

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.

Lamb Weston Holdings's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=83.85/1.94
=43.22

* 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.

During the past 10 years, the highest Cyclically Adjusted Price-to-FCF of Lamb Weston Holdings was 59.25. The lowest was 43.08. And the median was 58.10.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Lamb Weston Holdings Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Lamb Weston Holdings's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Lamb Weston Holdings (Lamb Weston Holdings) Business Description

Traded in Other Exchanges
Address
599 S. Rivershore Lane, Eagle, ID, USA, 83616
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by French fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Nearly 70% of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single largest customer at 13% of fiscal 2023 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
Executives
William G Jurgensen director
Eryk J Spytek officer: See Remarks 599 S. RIVERSHORE LANE, EAGLE ID 83616
Rita Fisher director 1900 W. FIELD COURT, LAKE FOREST IL 60045
Sukshma Rajagopalan officer: Chief Info and Digital Officer C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Marc Schroeder officer: President, International C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Sharon L. Miller officer: Senior Vice President 599 S. RIVERSHORE LANE, EAGLE ID 83616
Gregory W Jones officer: Vice President and Controller C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Bernadette M Madarieta officer: Vice President and Controller 599 S. RIVERSHORE LANE, EAGLE ID 83616
Michael Jared Smith officer: SVP, Growth & Strategy 599 S. RIVERSHORE LANE, EAGLE ID 83616
Gerardo Scheufler officer: SVP, Chief Supply Chain Off C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Steven J Younes officer: CHIEF HUMAN RESOURCES OFFICER C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
John C Hatto officer: Senior Vice President C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Robert A Niblock director 1605 CURTIS BRIDGE ROAD, WILKESBORO NC 28697
Peter J Bensen director MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Thomas P. Werner director, officer: President C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616