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RenaissanceRe Holdings (FRA:RRJ) Cyclically Adjusted Price-to-FCF : 6.59 (As of Oct. 09, 2024)


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What is RenaissanceRe Holdings Cyclically Adjusted Price-to-FCF?

As of today (2024-10-09), RenaissanceRe Holdings's current share price is €230.00. RenaissanceRe Holdings's Cyclically Adjusted FCF per Share for the quarter that ended in Jun. 2024 was €34.88. RenaissanceRe Holdings's Cyclically Adjusted Price-to-FCF for today is 6.59.

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

FRA:RRJ' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 4.33   Med: 8.85   Max: 12.58
Current: 6.77

During the past years, RenaissanceRe Holdings's highest Cyclically Adjusted Price-to-FCF was 12.58. The lowest was 4.33. And the median was 8.85.

FRA:RRJ's Cyclically Adjusted Price-to-FCF is ranked better than
69.52% of 315 companies
in the Insurance industry
Industry Median: 12.56 vs FRA:RRJ: 6.77

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.

RenaissanceRe Holdings's adjusted free cash flow per share data for the three months ended in Jun. 2024 was €21.736. 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 €34.88 for the trailing ten years ended in Jun. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


RenaissanceRe Holdings Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for RenaissanceRe Holdings'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.

RenaissanceRe Holdings Cyclically Adjusted Price-to-FCF Chart

RenaissanceRe Holdings 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 9.86 7.11 6.21 5.96 5.84

RenaissanceRe Holdings Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 5.70 5.84 5.84 6.65 5.96

Competitive Comparison of RenaissanceRe Holdings's Cyclically Adjusted Price-to-FCF

For the Insurance - Reinsurance subindustry, RenaissanceRe Holdings'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.


RenaissanceRe Holdings's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, RenaissanceRe Holdings's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

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



RenaissanceRe Holdings 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.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=230.00/34.88
=6.59

* 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.

RenaissanceRe Holdings's Cyclically Adjusted FCF per Share for the quarter that ended in Jun. 2024 is calculated as:

For example, RenaissanceRe Holdings's adjusted Free Cash Flow per Share data for the three months ended in Jun. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=21.736/132.5538*132.5538
=21.736

Current CPI (Jun. 2024) = 132.5538.

RenaissanceRe Holdings Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201409 4.329 100.428 5.714
201412 5.683 99.070 7.604
201503 -2.738 99.621 -3.643
201506 1.741 100.684 2.292
201509 3.799 100.392 5.016
201512 5.545 99.792 7.365
201603 -0.034 100.470 -0.045
201606 2.696 101.688 3.514
201609 5.581 101.861 7.263
201612 2.431 101.863 3.163
201703 4.627 102.862 5.963
201706 2.668 103.349 3.422
201709 5.948 104.136 7.571
201712 9.077 104.011 11.568
201803 -0.765 105.290 -0.963
201806 8.342 106.317 10.401
201809 11.663 106.507 14.515
201812 7.296 105.998 9.124
201903 7.930 107.251 9.801
201906 8.273 108.070 10.147
201909 10.020 108.329 12.261
201912 18.035 108.420 22.049
202003 9.905 108.902 12.056
202006 7.528 108.767 9.174
202009 8.013 109.815 9.672
202012 10.875 109.897 13.117
202103 3.499 111.754 4.150
202106 2.214 114.631 2.560
202109 8.582 115.734 9.829
202112 8.568 117.630 9.655
202203 3.523 121.301 3.850
202206 2.212 125.017 2.345
202209 14.178 125.227 15.008
202212 16.173 125.222 17.120
202303 9.463 127.348 9.850
202306 3.833 128.729 3.947
202309 14.373 129.860 14.671
202312 9.201 129.419 9.424
202403 12.132 131.776 12.204
202406 21.736 132.554 21.736

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.


RenaissanceRe Holdings  (FRA:RRJ) 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.


RenaissanceRe Holdings Cyclically Adjusted Price-to-FCF Related Terms

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


RenaissanceRe Holdings Business Description

Traded in Other Exchanges
Address
12 Crow Lane, Renaissance House, Pembroke, BMU, HM 19
RenaissanceRe Holdings Ltd provides reinsurance and insurance solutions and related services. The company's core products include property, casualty and specialty reinsurance. Revenue is derived from three sources: net premiums earned from the insurance and insurance products sold; net investment income from the investment of capital funds and cash; and other income from the company's joint ventures, advisory services, and other items. The reportable segments of the company are the Property segment which includes catastrophe and other property reinsurance, and the Casualty and Specialty segment which is comprised of casualty and specialty reinsurance. It derives a majority of its revenue from the Casualty and specialty segment.

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