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Embraer (Embraer) Cyclically Adjusted Price-to-FCF : (As of Apr. 27, 2024)


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What is Embraer Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Embraer Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Embraer'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.

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Embraer Cyclically Adjusted Price-to-FCF Chart

Embraer Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Embraer Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Dec23
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Competitive Comparison of Embraer's Cyclically Adjusted Price-to-FCF

For the Aerospace & Defense subindustry, Embraer'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.


Embraer's Cyclically Adjusted Price-to-FCF Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Embraer's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Embraer 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.

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

For example, Embraer's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2023 (Change)*Current CPI (Mar. 2023)
=-4.179/153.3524*153.3524
=-4.179

Current CPI (Mar. 2023) = 153.3524.

Embraer Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201306 1.246 86.214 2.216
201309 0.076 86.749 0.134
201312 0.304 88.522 0.527
201403 -2.343 90.447 -3.973
201406 -0.124 91.838 -0.207
201409 -0.892 92.602 -1.477
201412 2.175 94.194 3.541
201503 -3.159 97.799 -4.953
201506 0.898 100.006 1.377
201509 -0.333 101.392 -0.504
201512 3.096 104.247 4.554
201603 -1.894 106.979 -2.715
201606 -3.283 108.851 -4.625
201609 0.251 109.986 0.350
201612 0.003 110.802 0.004
201703 -3.911 111.869 -5.361
201706 1.515 112.115 2.072
201709 -0.067 112.777 -0.091
201712 2.834 114.068 3.810
201803 1.053 114.868 1.406
201806 0.825 117.038 1.081
201809 0.760 117.881 0.989
201812 0.964 118.340 1.249
201903 -2.448 120.124 -3.125
201906 -0.610 120.977 -0.773
201909 0.380 121.292 0.480
201912 4.450 123.436 5.529
202003 -3.676 124.092 -4.543
202006 -2.902 123.557 -3.602
202009 -4.534 125.095 -5.558
202012 2.886 129.012 3.430
202103 -2.661 131.660 -3.099
202106 -0.102 133.871 -0.117
202109 0.891 137.913 0.991
202112 3.050 141.992 3.294
202203 -1.001 146.537 -1.048
202206 -0.105 149.784 -0.108
202209 1.427 147.800 1.481
202212 2.454 150.207 2.505
202303 -4.179 153.352 -4.179

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.


Embraer  (NYSE:ERJ) 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.


Embraer Cyclically Adjusted Price-to-FCF Related Terms

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Embraer (Embraer) Business Description

Industry
Address
Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Pinheiros, SP, BRA, 05425-070
Embraer SA based in Sao Paulo, Brazil, Embraer manufactures regional aircraft, business jets, and defense and security products. The company also offers a range of services to support its installed base of hardware. Its defense and security business is currently focused on developing the KC-390 military transport aircraft. The company also produces aircraft systems and structural components. It operates through the following segments: Commercial Aviation; Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from Commercial Aviation segment.