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Compass Group (LSE:CPG) Cyclically Adjusted PB Ratio : 9.17 (As of Apr. 27, 2024)


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What is Compass Group Cyclically Adjusted PB Ratio?

As of today (2024-04-27), Compass Group's current share price is £22.29. Compass Group's Cyclically Adjusted Book per Share for the fiscal year that ended in Sep23 was £2.43. Compass Group's Cyclically Adjusted PB Ratio for today is 9.17.

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

LSE:CPG' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 5.49   Med: 8.58   Max: 12.09
Current: 9.2

During the past 13 years, Compass Group's highest Cyclically Adjusted PB Ratio was 12.09. The lowest was 5.49. And the median was 8.58.

LSE:CPG's Cyclically Adjusted PB Ratio is ranked worse than
92.86% of 224 companies
in the Restaurants industry
Industry Median: 2.105 vs LSE:CPG: 9.20

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.

Compass Group's adjusted book value per share data of for the fiscal year that ended in Sep23 was £2.994. 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 £2.43 for the trailing ten years ended in Sep23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Compass Group Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Compass Group'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.

Compass Group Cyclically Adjusted PB Ratio Chart

Compass Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.64 6.27 7.82 8.16 8.24

Compass Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 7.82 - 8.16 - 8.24

Competitive Comparison of Compass Group's Cyclically Adjusted PB Ratio

For the Restaurants subindustry, Compass Group'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.


Compass Group's Cyclically Adjusted PB Ratio Distribution in the Restaurants Industry

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

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



Compass Group 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.

Compass Group's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=22.29/2.43
=9.17

* 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.

Compass Group's Cyclically Adjusted Book per Share for the fiscal year that ended in Sep23 is calculated as:

For example, Compass Group's adjusted Book Value per Share data for the fiscal year that ended in Sep23 was:

Adj_Book=Book Value per Share/CPI of Sep23 (Change)*Current CPI (Sep23)
=2.994/130.1000*130.1000
=2.994

Current CPI (Sep23) = 130.1000.

Compass Group Annual Data

Book Value per Share CPI Adj_Book
201409 1.143 100.000 1.487
201509 1.222 100.200 1.587
201609 1.586 101.500 2.033
201709 1.340 104.300 1.671
201809 1.668 106.600 2.036
201909 2.118 108.400 2.542
202009 2.685 109.200 3.199
202109 2.742 112.400 3.174
202209 3.337 122.300 3.550
202309 2.994 130.100 2.994

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.


Compass Group  (LSE:CPG) 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.


Compass Group Cyclically Adjusted PB Ratio Related Terms

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


Compass Group (LSE:CPG) Business Description

Traded in Other Exchanges
Address
Guildford Street, Compass House, Chertsey, Surrey, GBR, KT16 9BQ
Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales of more than GBP 25 billion. Compass Group's model stems from operating on-premises catering facilities, rather than centralised industrial kitchens. Food service is Compass' core focus and contributes more than 80% of revenue. In addition, the company provides support services to clients through activities including cleaning services, office services (for example, concierge services), grounds maintenance, and so on.