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Fairfax India Holdings (TSX:FIH.U) Cyclically Adjusted Book per Share : $17.84 (As of Dec. 2023)


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What is Fairfax India 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.

Fairfax India Holdings's adjusted book value per share data for the fiscal year that ended in Dec. 2023 was $21.852. 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 $17.84 for the trailing ten years ended in Dec. 2023.

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.

As of today (2024-04-27), Fairfax India Holdings's current stock price is $ 14.74. Fairfax India Holdings's Cyclically Adjusted Book per Share for the fiscal year that ended in Dec. 2023 was $17.84. Fairfax India Holdings's Cyclically Adjusted PB Ratio of today is 0.83.

During the past 10 years, the highest Cyclically Adjusted PB Ratio of Fairfax India Holdings was 0.84. The lowest was 0.80. And the median was 0.83.


Fairfax India Holdings Cyclically Adjusted Book per Share Historical Data

The historical data trend for Fairfax India 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.

Fairfax India Holdings Cyclically Adjusted Book per Share Chart

Fairfax India 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 - - - - 17.84

Fairfax India Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - - - - 17.84

Competitive Comparison of Fairfax India Holdings's Cyclically Adjusted Book per Share

For the Asset Management subindustry, Fairfax India 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.


Fairfax India Holdings's Cyclically Adjusted PB Ratio Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Fairfax India Holdings's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



Fairfax India 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, Fairfax India Holdings's adjusted Book Value per Share data for the fiscal year that ended in Dec. 2023 was:

Adj_Book=Book Value per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=21.852/125.4675*125.4675
=21.852

Current CPI (Dec. 2023) = 125.4675.

Fairfax India Holdings Annual Data

Book Value per Share CPI Adj_Book
201412 0.000 98.367 0.000
201512 9.499 99.947 11.924
201612 10.254 101.449 12.682
201712 14.464 103.345 17.560
201812 13.855 105.399 16.493
201912 16.889 107.769 19.663
202012 16.371 108.559 18.921
202112 19.647 113.774 21.666
202212 19.108 120.964 19.819
202312 21.852 125.468 21.852

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


Fairfax India Holdings  (TSX:FIH.U) 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.

Fairfax India Holdings's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=14.74/17.84
=0.83

* 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 10 years, the highest Cyclically Adjusted PB Ratio of Fairfax India Holdings was 0.84. The lowest was 0.80. And the median was 0.83.


Be Aware

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


Fairfax India Holdings Cyclically Adjusted Book per Share Related Terms

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


Fairfax India Holdings (TSX:FIH.U) Business Description

Traded in Other Exchanges
Address
95 Wellington Street West, Suite 800, Toronto, ON, CAN, M5J 2N7
Fairfax India Holdings Corp is an investment holding company. The investment objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers, or business conducted in or dependent on India. The company operates through investing in the India segment and it earns income through the source of interest and dividends.

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