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Netgear (Netgear) Cyclically Adjusted FCF per Share : $1.73 (As of Dec. 2023)


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What is Netgear 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.

Netgear's adjusted free cash flow per share for the three months ended in Dec. 2023 was $1.825. 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 $1.73 for the trailing ten years ended in Dec. 2023.

During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was -4.70% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 2.40% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 2.70% per year. 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.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Netgear was 17.70% per year. The lowest was -7.40% per year. And the median was 4.60% per year.

As of today (2024-04-27), Netgear's current stock price is $14.85. Netgear's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $1.73. Netgear's Cyclically Adjusted Price-to-FCF of today is 8.58.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Netgear was 24.89. The lowest was 6.93. And the median was 15.95.


Netgear Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Netgear'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.

Netgear Cyclically Adjusted FCF per Share Chart

Netgear Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.47 2.00 1.81 1.73 1.73

Netgear Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 1.73 1.65 1.52 1.58 1.73

Competitive Comparison of Netgear's Cyclically Adjusted FCF per Share

For the Communication Equipment subindustry, Netgear'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.


Netgear's Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Netgear's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Netgear 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, Netgear's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=1.825/129.4194*129.4194
=1.825

Current CPI (Dec. 2023) = 129.4194.

Netgear Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.066 99.695 0.086
201406 0.838 100.560 1.079
201409 0.575 100.428 0.741
201412 1.004 99.070 1.312
201503 -0.170 99.621 -0.221
201506 1.058 100.684 1.360
201509 2.295 100.392 2.959
201512 -0.222 99.792 -0.288
201603 1.803 100.470 2.323
201606 0.749 101.688 0.953
201609 1.218 101.861 1.548
201612 -0.540 101.863 -0.686
201703 0.171 102.862 0.215
201706 -0.260 103.349 -0.326
201709 2.914 104.136 3.622
201712 -0.454 104.011 -0.565
201803 1.660 105.290 2.040
201806 -0.611 106.317 -0.744
201809 0.930 106.507 1.130
201812 -5.294 105.998 -6.464
201903 -1.313 107.251 -1.584
201906 0.741 108.070 0.887
201909 -0.895 108.329 -1.069
201912 1.526 108.420 1.822
202003 0.937 108.902 1.114
202006 2.022 108.767 2.406
202009 1.315 109.815 1.550
202012 1.329 109.897 1.565
202103 0.382 111.754 0.442
202106 -0.260 114.631 -0.294
202109 -0.629 115.734 -0.703
202112 0.032 117.630 0.035
202203 0.011 121.301 0.012
202206 0.141 125.017 0.146
202209 -0.597 125.227 -0.617
202212 -0.226 125.222 -0.234
202303 0.284 127.348 0.289
202306 -1.205 128.729 -1.211
202309 0.815 129.860 0.812
202312 1.825 129.419 1.825

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


Netgear  (NAS:NTGR) 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.

Netgear's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=14.85/1.73
=8.58

* 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 13 years, the highest Cyclically Adjusted Price-to-FCF of Netgear was 24.89. The lowest was 6.93. And the median was 15.95.


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.


Netgear Cyclically Adjusted FCF per Share Related Terms

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


Netgear (Netgear) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Netgear Inc (NAS:NTGR) » Definitions » Cyclically Adjusted FCF per Share
Traded in Other Exchanges
Address
350 East Plumeria Drive, San Jose, CA, USA, 95134
Netgear Inc is a provider of networking solutions. The reportable segments of the company are connected home, and Small and Medium Businesses (SMB). The Connected Home segment focuses on consumers and consists of high-performance, dependable, and easy-to-use 4G/5G mobile, Wi-Fi internet networking solutions and smart devices such as Orbi Voice smart speakers and Meural digital canvas; and SMB focused on small and medium-sized businesses and consists of business networking, storage, wireless LAN and security solutions that bring enterprise-class functionality to small and medium-sized businesses at an affordable price.
Executives
Andrew Wonki Kim officer: SVP, Legal and Corp. Dev. 892 RUSSET DR., SUNNYVALE CA 94087
Martin Westhead officer: CTO 350 E. PLUMERIA DR., SAN JOSE CA 95134
Heidi Cormack officer: SVP, Marketing 350 E. PLUMERIA DR., SAN JOSE CA 95134
Vikram Mehta officer: SVP, CBU 350 E. PLUMERIA DR., SAN JOSE CA 95134
Michael A Werdann officer: SVP of Worldwide Sales 4500 GREAT AMERICAN PARKWAY, C/O NETGEAR INC, SANTA CLARA CA 95054
Laura Durr director C/O XPERI HOLDING CORPORATION, 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
Mark G Merrill officer: Chief Technology Officer
Patrick Cs Lo director, officer: Chairman and CEO
Shravan Goli director 1040 AVENUE OF THE AMERICAS, NEW YORK NY 10016
David John Henry officer: SVP, Home Networking 350 E. PLUMERIA DR., SAN JOSE CA 95134
Thomas H Waechter director
Michael F Falcon officer: SVP, Operations
Tamesa Rogers officer: SVP, Human Resources 350 EAST PLUMERIA DR, SAN JOSE CA 95134
Murray Bryan officer: CFO 350 E. PLUMERIA DR., SAN JOSE CA 95134
Gregory J Rossman director 500 NYALA FARM RD, WESTPORT CT 06880