GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Compass Group PLC (LSE:CPG) » Definitions » Cyclically Adjusted PS Ratio

Compass Group (LSE:CPG) Cyclically Adjusted PS Ratio : 1.44 (As of Apr. 27, 2024)


View and export this data going back to 2001. Start your Free Trial

What is Compass Group Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Compass Group's current share price is £22.29. Compass Group's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Sep23 was £15.51. Compass Group's Cyclically Adjusted PS Ratio for today is 1.44.

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

LSE:CPG' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.84   Med: 1.36   Max: 1.82
Current: 1.44

During the past 13 years, Compass Group's highest Cyclically Adjusted PS Ratio was 1.82. The lowest was 0.84. And the median was 1.36.

LSE:CPG's Cyclically Adjusted PS Ratio is ranked worse than
69.71% of 241 companies
in the Restaurants industry
Industry Median: 0.79 vs LSE:CPG: 1.44

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.

Compass Group's adjusted revenue per share data of for the fiscal year that ended in Sep23 was £17.781. 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 £15.51 for the trailing ten years ended in Sep23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Compass Group Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Compass Group'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.

Compass Group Cyclically Adjusted PS Ratio Chart

Compass Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.70 0.93 1.18 1.27 1.29

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 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 1.18 - 1.27 - 1.29

Competitive Comparison of Compass Group's Cyclically Adjusted PS Ratio

For the Restaurants subindustry, Compass Group'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.


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

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

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



Compass Group 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.

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=22.29/15.51
=1.44

* 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 Revenue per Share for the fiscal year that ended in Sep23 is calculated as:

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

Adj_RevenuePerShare=Revenue per Share/CPI of Sep23 (Change)*Current CPI (Sep23)
=17.781/130.1000*130.1000
=17.781

Current CPI (Sep23) = 130.1000.

Compass Group Annual Data

Revenue per Share CPI Adj_RevenuePerShare
201409 9.897 100.000 12.876
201509 10.981 100.200 14.258
201609 11.911 101.500 15.267
201709 13.854 104.300 17.281
201809 14.430 106.600 17.611
201909 15.676 108.400 18.814
202009 12.019 109.200 14.319
202109 10.032 112.400 11.612
202209 14.341 122.300 15.256
202309 17.781 130.100 17.781

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.


Compass Group  (LSE:CPG) 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.


Compass Group Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Compass Group's Cyclically Adjusted PS 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.