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Shell (WBO:RDSA) Cyclically Adjusted PS Ratio : 0.72 (As of May. 14, 2024)


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What is Shell Cyclically Adjusted PS Ratio?

As of today (2024-05-14), Shell's current share price is €14.69. Shell's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €20.33. Shell's Cyclically Adjusted PS Ratio for today is 0.72.

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

WBO:RDSA' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.24   Med: 0.56   Max: 0.81
Current: 0.81

During the past years, Shell's highest Cyclically Adjusted PS Ratio was 0.81. The lowest was 0.24. And the median was 0.56.

WBO:RDSA's Cyclically Adjusted PS Ratio is ranked better than
54.69% of 757 companies
in the Oil & Gas industry
Industry Median: 0.88 vs WBO:RDSA: 0.81

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Shell's adjusted revenue per share data for the three months ended in Mar. 2024 was €10.252. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €20.33 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Shell Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Shell's Cyclically Adjusted PS 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.

Shell Cyclically Adjusted PS Ratio Chart

Shell Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.56 0.35 0.45 0.62 0.70

Shell Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS 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 0.61 0.62 0.70 0.70 0.72

Competitive Comparison of Shell's Cyclically Adjusted PS Ratio

For the Oil & Gas Integrated subindustry, Shell's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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.


Shell's Cyclically Adjusted PS Ratio Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Shell's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Shell's Cyclically Adjusted PS Ratio falls into.



Shell Cyclically Adjusted PS Ratio Calculation

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

Shell's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=14.69/20.33
=0.72

* 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.

Shell's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Shell's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=10.252/130.0000*130.0000
=10.252

Current CPI (Mar. 2024) = 130.0000.

Shell Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 12.945 99.800 16.862
201409 13.213 100.000 17.177
201412 11.889 99.900 15.471
201503 9.521 99.600 12.427
201506 10.105 100.100 13.123
201509 9.570 100.200 12.416
201512 8.319 100.400 10.772
201603 6.030 100.400 7.808
201606 6.456 101.000 8.310
201609 6.798 101.500 8.707
201612 7.515 102.200 9.559
201703 8.164 102.700 10.334
201706 7.742 103.500 9.724
201709 7.642 104.300 9.525
201712 8.639 105.000 10.696
201803 8.639 105.100 10.686
201806 9.889 105.900 12.139
201809 10.275 106.600 12.530
201812 10.840 107.100 13.158
201903 9.025 107.000 10.965
201906 9.828 107.900 11.841
201909 9.746 108.400 11.688
201912 9.495 108.500 11.376
202003 6.947 108.600 8.316
202006 3.705 108.800 4.427
202009 4.777 109.200 5.687
202012 4.645 109.400 5.520
202103 5.970 109.700 7.075
202106 6.410 111.400 7.480
202109 6.566 112.400 7.594
202112 9.747 114.700 11.047
202203 9.979 116.500 11.135
202206 12.590 120.500 13.583
202209 13.173 122.300 14.002
202212 13.423 125.300 13.926
202303 11.633 126.800 11.927
202306 10.043 129.400 10.090
202309 10.619 130.100 10.611
202312 10.891 130.000 10.891
202403 10.252 130.000 10.252

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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.


Shell  (WBO:RDSA) Cyclically Adjusted PS Ratio Explanation

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


Shell Cyclically Adjusted PS Ratio Related Terms

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


Shell (WBO:RDSA) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Shell PLC (WBO:RDSA) » Definitions » Cyclically Adjusted PS Ratio
Address
Shell Centre, London, GBR, SE1 7NA
Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.

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