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Divi's Laboratories (NSE:DIVISLAB) Cyclically Adjusted PB Ratio : 12.23 (As of May. 14, 2024)


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What is Divi's Laboratories Cyclically Adjusted PB Ratio?

As of today (2024-05-14), Divi's Laboratories's current share price is ₹3911.50. Divi's Laboratories's Cyclically Adjusted Book per Share for the fiscal year that ended in Mar23 was ₹319.74. Divi's Laboratories's Cyclically Adjusted PB Ratio for today is 12.23.

The historical rank and industry rank for Divi's Laboratories's Cyclically Adjusted PB Ratio or its related term are showing as below:

NSE:DIVISLAB' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 8.83   Med: 11.87   Max: 18.84
Current: 11.86

During the past 13 years, Divi's Laboratories's highest Cyclically Adjusted PB Ratio was 18.84. The lowest was 8.83. And the median was 11.87.

NSE:DIVISLAB's Cyclically Adjusted PB Ratio is ranked worse than
95.03% of 664 companies
in the Drug Manufacturers industry
Industry Median: 1.875 vs NSE:DIVISLAB: 11.86

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.

Divi's Laboratories's adjusted book value per share data of for the fiscal year that ended in Mar23 was ₹480.926. 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 ₹319.74 for the trailing ten years ended in Mar23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Divi's Laboratories Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Divi's Laboratories's Cyclically Adjusted PB Ratio 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.

Divi's Laboratories Cyclically Adjusted PB Ratio Chart

Divi's Laboratories Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.98 10.12 15.75 16.18 8.83

Divi's Laboratories Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PB Ratio 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 - 8.83 - - -

Competitive Comparison of Divi's Laboratories's Cyclically Adjusted PB Ratio

For the Drug Manufacturers - Specialty & Generic subindustry, Divi's Laboratories'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.


Divi's Laboratories's Cyclically Adjusted PB Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Divi's Laboratories's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Divi's Laboratories's Cyclically Adjusted PB Ratio falls into.



Divi's Laboratories Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB 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 PB Ratio.

Divi's Laboratories's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=3911.50/319.74
=12.23

* 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.

Divi's Laboratories's Cyclically Adjusted Book per Share for the fiscal year that ended in Mar23 is calculated as:

For example, Divi's Laboratories's adjusted Book Value per Share data for the fiscal year that ended in Mar23 was:

Adj_Book=Book Value per Share/CPI of Mar23 (Change)*Current CPI (Mar23)
=480.926/146.8646*146.8646
=480.926

Current CPI (Mar23) = 146.8646.

Divi's Laboratories Annual Data

Book Value per Share CPI Adj_Book
201403 111.627 91.425 179.317
201503 143.984 97.163 217.636
201603 161.725 102.518 231.682
201703 201.808 105.196 281.745
201803 223.182 109.786 298.557
201903 262.070 118.202 325.619
202003 275.359 124.705 324.289
202103 350.120 131.771 390.226
202203 441.791 138.822 467.387
202303 480.926 146.865 480.926

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


Divi's Laboratories  (NSE:DIVISLAB) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Divi's Laboratories Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Divi's Laboratories's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Divi's Laboratories (NSE:DIVISLAB) Business Description

Traded in Other Exchanges
Address
Divi Towers, 1-72/23(P)/DIVIS/303, Babukhan Lane, Cyber Hills, Gachibowli, Hyderabad, TG, IND, 500032
Divi's Laboratories Ltd is a specialty and generic drug manufacturing company. Most of the company's sales are generated in Europe, followed by North America, India, and Asia. The company has three distinct business segments: Generic APIs, Custom Synthesis, and Nutraceuticals. The company considers merger and acquisition investment to be a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

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