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Moody's (Moody's) Cyclically Adjusted Price-to-FCF : 44.72 (As of Apr. 27, 2024)


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What is Moody's Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Moody's's current share price is $376.13. Moody's's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $8.41. Moody's's Cyclically Adjusted Price-to-FCF for today is 44.72.

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

MCO' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 21.73   Med: 38.29   Max: 59.26
Current: 44.7

During the past years, Moody's's highest Cyclically Adjusted Price-to-FCF was 59.26. The lowest was 21.73. And the median was 38.29.

MCO's Cyclically Adjusted Price-to-FCF is ranked worse than
79.19% of 221 companies
in the Capital Markets industry
Industry Median: 19.29 vs MCO: 44.70

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.

Moody's's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $2.199. 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 $8.41 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Moody's Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Moody's'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.

Moody's Cyclically Adjusted Price-to-FCF Chart

Moody's 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 46.70 48.80 55.86 36.41 46.41

Moody's 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 36.41 38.43 42.11 37.73 46.41

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

For the Financial Data & Stock Exchanges subindustry, Moody's'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.


Moody's's Cyclically Adjusted Price-to-FCF Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Moody's's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



Moody's 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=376.13/8.41
=44.72

* 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.

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

For example, Moody's'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)
=2.199/129.4194*129.4194
=2.199

Current CPI (Dec. 2023) = 129.4194.

Moody's Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.724 99.695 0.940
201406 1.210 100.560 1.557
201409 1.092 100.428 1.407
201412 1.382 99.070 1.805
201503 1.176 99.621 1.528
201506 1.521 100.684 1.955
201509 1.353 100.392 1.744
201512 1.407 99.792 1.825
201603 1.149 100.470 1.480
201606 1.352 101.688 1.721
201609 1.606 101.861 2.041
201612 1.755 101.863 2.230
201703 -2.733 102.862 -3.439
201706 2.310 103.349 2.893
201709 1.874 104.136 2.329
201712 1.972 104.011 2.454
201803 1.936 105.290 2.380
201806 1.867 106.317 2.273
201809 1.451 106.507 1.763
201812 1.792 105.998 2.188
201903 1.800 107.251 2.172
201906 1.929 108.070 2.310
201909 2.193 108.329 2.620
201912 2.466 108.420 2.944
202003 1.709 108.902 2.031
202006 3.127 108.767 3.721
202009 2.588 109.815 3.050
202012 3.370 109.897 3.969
202103 3.510 111.754 4.065
202106 3.002 114.631 3.389
202109 2.152 115.734 2.406
202112 1.263 117.630 1.390
202203 2.208 121.301 2.356
202206 1.174 125.017 1.215
202209 1.441 125.227 1.489
202212 1.619 125.222 1.673
202303 2.906 127.348 2.953
202306 2.988 128.729 3.004
202309 2.125 129.860 2.118
202312 2.199 129.419 2.199

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.


Moody's  (NYSE:MCO) 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.


Moody's Cyclically Adjusted Price-to-FCF Related Terms

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


Moody's (Moody's) Business Description

Traded in Other Exchanges
Address
7 World Trade Center at 250 Greenwich Street, New York, NY, USA, 10007
Moody's, along with S&P Ratings, is a leading provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. The other segment, Moody's Analytics, consists of research, data, and analytics as well as enterprise risk solutions. RD&A's products include credit research, quantitative credit scores, economic research, business intelligence, know-your-customer tools, commercial real estate data and analytical tools, and training services. ERS includes risk-management software solutions for financial institutions.
Executives
Robert Fauber director, officer: President and CEO 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Michael L West officer: President, Moody's Investors 7 WORLD TRADE CENTER, 250 GREENWICH ST, NEW YORK NY 10007
Richard G Steele officer: SVP - General Counsel C/O MOODY'S CORPORATION, 7 WORLD TRADE CENTER AT 250 GREENWICH ST, NEW YORK NY 10007
Kathryn Hill director 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Lloyd Jr Howell director 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Vincent A Forlenza director C/O BECTON DICKERSON & CO, 1 BECTON DR, FRANKLIN LAKES NJ 07417
Jorge A. Bermudez director CORPORATE LAW DEPT., CITIGROUP INC., 425 PARK AVENUE, NEW YORK NY 10043
Jose Minaya director 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Saun Bruce Van director CITIZENS FINANCIAL GROUP, INC., 600 WASHINGTON BLVD, STAMFORD CT 06901
Leslie Seidman director 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Therese Esperdy director 7 WORLD TRADE CENTER, 250 GREENWICH ST, NEW YORK NY 10007
Caroline Sullivan officer: SVP - Corporate Controller 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Mark Kaye officer: EVP & Chief Financial Officer 7 WORLD TRADE CENTER, 250 GREENWICH ST, NEW YORK NY 10007
Raymond W Mcdaniel director, officer: Executive Vice President 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Stephen T Tulenko officer: President, Moody's Analytics 7 WORLD TRADE CENTER, 250 GREENWICH ST, NEW YORK NY 10007

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