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Check Point Software Technologies (Check Point Software Technologies) Cyclically Adjusted Price-to-FCF : 18.71 (As of Apr. 28, 2024)


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What is Check Point Software Technologies Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Check Point Software Technologies's current share price is $151.20. Check Point Software Technologies's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $8.08. Check Point Software Technologies's Cyclically Adjusted Price-to-FCF for today is 18.71.

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

CHKP' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 14.88   Med: 22.21   Max: 29.22
Current: 18.7

During the past years, Check Point Software Technologies's highest Cyclically Adjusted Price-to-FCF was 29.22. The lowest was 14.88. And the median was 22.21.

CHKP's Cyclically Adjusted Price-to-FCF is ranked better than
66.12% of 670 companies
in the Software industry
Industry Median: 28.305 vs CHKP: 18.70

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.

Check Point Software Technologies's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $2.023. 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 $8.08 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Check Point Software Technologies Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Check Point Software Technologies'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.

Check Point Software Technologies Cyclically Adjusted Price-to-FCF Chart

Check Point Software Technologies 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 20.83 22.80 17.35 16.83 18.90

Check Point Software Technologies 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 16.83 16.83 16.03 16.74 18.90

Competitive Comparison of Check Point Software Technologies's Cyclically Adjusted Price-to-FCF

For the Software - Infrastructure subindustry, Check Point Software Technologies'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.


Check Point Software Technologies's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Check Point Software Technologies's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Check Point Software Technologies's Cyclically Adjusted Price-to-FCF falls into.



Check Point Software Technologies 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.

Check Point Software Technologies's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=151.20/8.08
=18.71

* 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.

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

For example, Check Point Software Technologies'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)
=2.023/129.4194*129.4194
=2.023

Current CPI (Dec. 2023) = 129.4194.

Check Point Software Technologies Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.868 99.695 1.127
201406 0.857 100.560 1.103
201409 1.041 100.428 1.342
201412 1.263 99.070 1.650
201503 1.502 99.621 1.951
201506 1.024 100.684 1.316
201509 1.229 100.392 1.584
201512 1.318 99.792 1.709
201603 1.803 100.470 2.323
201606 1.139 101.688 1.450
201609 1.204 101.861 1.530
201612 1.179 101.863 1.498
201703 2.062 102.862 2.594
201706 1.313 103.349 1.644
201709 1.513 104.136 1.880
201712 1.595 104.011 1.985
201803 2.561 105.290 3.148
201806 1.305 106.317 1.589
201809 1.543 106.507 1.875
201812 1.645 105.998 2.008
201903 2.368 107.251 2.857
201906 1.481 108.070 1.774
201909 1.584 108.329 1.892
201912 1.638 108.420 1.955
202003 2.411 108.902 2.865
202006 1.743 108.767 2.074
202009 1.723 109.815 2.031
202012 2.193 109.897 2.583
202103 2.700 111.754 3.127
202106 1.931 114.631 2.180
202109 1.847 115.734 2.065
202112 2.331 117.630 2.565
202203 3.030 121.301 3.233
202206 1.605 125.017 1.662
202209 1.889 125.227 1.952
202212 2.009 125.222 2.076
202303 3.149 127.348 3.200
202306 1.572 128.729 1.580
202309 1.843 129.860 1.837
202312 2.023 129.419 2.023

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.


Check Point Software Technologies  (NAS:CHKP) 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.


Check Point Software Technologies Cyclically Adjusted Price-to-FCF Related Terms

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


Check Point Software Technologies (Check Point Software Technologies) Business Description

Traded in Other Exchanges
Address
5 Shlomo Kaplan Street, Tel Aviv, ISR, 6789159
Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.

Check Point Software Technologies (Check Point Software Technologies) Headlines