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Arcos Dorados Holdings (STU:AD8) Cyclically Adjusted Book per Share : €1.77 (As of Mar. 2024)


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What is Arcos Dorados Holdings Cyclically Adjusted Book per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Arcos Dorados Holdings's adjusted book value per share for the three months ended in Mar. 2024 was €2.117. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €1.77 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Arcos Dorados Holdings's average Cyclically Adjusted Book Growth Rate was -5.80% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was -6.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Arcos Dorados Holdings was -6.70% per year. The lowest was -6.90% per year. And the median was -6.80% per year.

As of today (2024-06-08), Arcos Dorados Holdings's current stock price is €8.968. Arcos Dorados Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was €1.77. Arcos Dorados Holdings's Cyclically Adjusted PB Ratio of today is 5.07.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Arcos Dorados Holdings was 6.58. The lowest was 1.15. And the median was 3.01.


Arcos Dorados Holdings Cyclically Adjusted Book per Share Historical Data

The historical data trend for Arcos Dorados Holdings's Cyclically Adjusted Book per Share 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.

Arcos Dorados Holdings Cyclically Adjusted Book per Share Chart

Arcos Dorados Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.34 1.85 1.91 1.95 1.78

Arcos Dorados Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Book per Share 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 1.91 1.82 1.91 1.78 1.77

Competitive Comparison of Arcos Dorados Holdings's Cyclically Adjusted Book per Share

For the Restaurants subindustry, Arcos Dorados Holdings's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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.


Arcos Dorados Holdings's Cyclically Adjusted PB Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's Cyclically Adjusted PB Ratio falls into.



Arcos Dorados Holdings Cyclically Adjusted Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book 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.

For example, Arcos Dorados Holdings's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book= Book Value per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.117/131.7762*131.7762
=2.117

Current CPI (Mar. 2024) = 131.7762.

Arcos Dorados Holdings Quarterly Data

Book Value per Share CPI Adj_Book
201406 1.776 100.560 2.327
201409 1.686 100.428 2.212
201412 1.715 99.070 2.281
201503 1.641 99.621 2.171
201506 1.579 100.684 2.067
201509 1.246 100.392 1.636
201512 1.214 99.792 1.603
201603 1.228 100.470 1.611
201606 1.386 101.688 1.796
201609 1.388 101.861 1.796
201612 1.536 101.863 1.987
201703 1.807 102.862 2.315
201706 1.688 103.349 2.152
201709 1.680 104.136 2.126
201712 1.931 104.011 2.446
201803 1.733 105.290 2.169
201806 1.582 106.317 1.961
201809 1.633 106.507 2.020
201812 1.635 105.998 2.033
201903 1.543 107.251 1.896
201906 1.603 108.070 1.955
201909 1.616 108.329 1.966
201912 1.807 108.420 2.196
202003 1.126 108.902 1.363
202006 0.703 108.767 0.852
202009 0.627 109.815 0.752
202012 0.772 109.897 0.926
202103 0.647 111.754 0.763
202106 0.692 114.631 0.795
202109 0.751 115.734 0.855
202112 0.927 117.630 1.038
202203 1.030 121.301 1.119
202206 0.960 125.017 1.012
202209 1.159 125.227 1.220
202212 1.451 125.222 1.527
202303 1.572 127.348 1.627
202306 1.769 128.729 1.811
202309 1.965 129.860 1.994
202312 2.243 129.419 2.284
202403 2.117 131.776 2.117

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.


Arcos Dorados Holdings  (STU:AD8) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Arcos Dorados Holdings's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=8.968/1.77
=5.07

* 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.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Arcos Dorados Holdings was 6.58. The lowest was 1.15. And the median was 3.01.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


Arcos Dorados Holdings Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of Arcos Dorados Holdings's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Arcos Dorados Holdings (STU:AD8) Business Description

Traded in Other Exchanges
Address
Dr. Luis Bonavita 1294, Office 501, WTC Free Zone, Montevideo, URY, 11300
Arcos Dorados Holdings Inc operates McDonald's-branded restaurants in approximately 20 countries and territories in Latin America and the Caribbean. It functions through two sources which include company-operated restaurants and franchised restaurants segment. Their menu includes hamburgers, McNuggets, salad, sandwiches, french fries and others.

Arcos Dorados Holdings (STU:AD8) Headlines

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