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Ambev (ABEV) Cyclically Adjusted Price-to-FCF : 9.71 (As of Apr. 28, 2024)


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What is Ambev Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Ambev's current share price is $2.33. Ambev's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.24. Ambev's Cyclically Adjusted Price-to-FCF for today is 9.71.

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

ABEV' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 10.3   Med: 20.41   Max: 36.04
Current: 10.39

During the past years, Ambev's highest Cyclically Adjusted Price-to-FCF was 36.04. The lowest was 10.30. And the median was 20.41.

ABEV's Cyclically Adjusted Price-to-FCF is ranked better than
81.98% of 111 companies
in the Beverages - Alcoholic industry
Industry Median: 26.89 vs ABEV: 10.39

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.

Ambev's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $0.151. 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 $0.24 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ambev Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Ambev'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.

Ambev Cyclically Adjusted Price-to-FCF Chart

Ambev 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 19.23 15.40 13.97 12.82 11.88

Ambev Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 12.82 12.59 13.49 11.37 11.88

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

For the Beverages - Brewers subindustry, Ambev'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.


Ambev's Cyclically Adjusted Price-to-FCF Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Ambev's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Ambev 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=2.33/0.24
=9.71

* 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.

Ambev's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Ambev'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)
=0.151/156.2729*156.2729
=0.151

Current CPI (Dec. 2023) = 156.2729.

Ambev Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.019 90.447 0.033
201406 0.042 91.838 0.071
201409 0.047 92.602 0.079
201412 0.175 94.194 0.290
201503 0.051 97.799 0.081
201506 0.055 100.006 0.086
201509 0.069 101.392 0.106
201512 0.144 104.247 0.216
201603 -0.050 106.979 -0.073
201606 0.017 108.851 0.024
201609 0.069 109.986 0.098
201612 0.122 110.802 0.172
201703 0.029 111.869 0.041
201706 0.033 112.115 0.046
201709 0.078 112.777 0.108
201712 0.149 114.068 0.204
201803 0.009 114.868 0.012
201806 0.040 117.038 0.053
201809 0.068 117.881 0.090
201812 0.121 118.340 0.160
201903 0.025 120.124 0.033
201906 0.036 120.977 0.047
201909 0.030 121.292 0.039
201912 0.117 123.436 0.148
202003 0.003 124.092 0.004
202006 0.013 123.557 0.016
202009 0.069 125.095 0.086
202012 0.086 129.012 0.104
202103 0.017 131.660 0.020
202106 0.003 133.871 0.004
202109 0.056 137.913 0.063
202112 0.098 141.992 0.108
202203 -0.005 146.537 -0.005
202206 0.006 149.784 0.006
202209 0.051 147.800 0.054
202212 0.118 150.207 0.123
202303 -0.021 153.352 -0.021
202306 0.028 154.519 0.028
202309 0.085 155.464 0.085
202312 0.151 156.273 0.151

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.


Ambev  (NYSE:ABEV) 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.


Ambev Cyclically Adjusted Price-to-FCF Related Terms

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


Ambev (ABEV) Business Description

Address
Rua Doutor Renato Paes de Barros, 1017, 3rd Floor, Sao Paulo, SP, BRA, 04530-001
Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2022.

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