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Solution Financial (TSX:SFI) Cyclically Adjusted PB Ratio : 2.33 (As of May. 26, 2024)


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What is Solution Financial Cyclically Adjusted PB Ratio?

As of today (2024-05-26), Solution Financial's current share price is C$0.28. Solution Financial's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 was C$0.12. Solution Financial's Cyclically Adjusted PB Ratio for today is 2.33.

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

TSX:SFI' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.92   Med: 3.72   Max: 49
Current: 2.34

During the past years, Solution Financial's highest Cyclically Adjusted PB Ratio was 49.00. The lowest was 1.92. And the median was 3.72.

TSX:SFI's Cyclically Adjusted PB Ratio is ranked worse than
74.07% of 941 companies
in the Vehicles & Parts industry
Industry Median: 1.29 vs TSX:SFI: 2.34

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.

Solution Financial's adjusted book value per share data for the three months ended in Jan. 2024 was C$0.147. 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 C$0.12 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Solution Financial Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Solution Financial'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.

Solution Financial Cyclically Adjusted PB Ratio Chart

Solution Financial Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 11.79 6.04 2.83 2.11

Solution Financial Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 2.91 2.83 2.65 2.11 2.51

Competitive Comparison of Solution Financial's Cyclically Adjusted PB Ratio

For the Auto & Truck Dealerships subindustry, Solution Financial'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.


Solution Financial's Cyclically Adjusted PB Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Solution Financial's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



Solution Financial 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.

Solution Financial's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=0.28/0.12
=2.33

* 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.

Solution Financial's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Solution Financial's adjusted Book Value per Share data for the three months ended in Jan. 2024 was:

Adj_Book=Book Value per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.147/125.0724*125.0724
=0.147

Current CPI (Jan. 2024) = 125.0724.

Solution Financial Quarterly Data

Book Value per Share CPI Adj_Book
201403 0.078 98.604 0.099
201406 0.076 99.473 0.096
201409 0.079 99.394 0.099
201412 0.077 98.367 0.098
201503 0.075 99.789 0.094
201506 0.074 100.500 0.092
201509 0.069 100.421 0.086
201512 0.068 99.947 0.085
201603 0.068 101.054 0.084
201606 0.066 102.002 0.081
201609 0.060 101.765 0.074
201612 0.059 101.449 0.073
201703 0.057 102.634 0.069
201706 0.056 103.029 0.068
201709 0.052 103.345 0.063
201712 0.043 103.345 0.052
201803 0.055 105.004 0.066
201807 0.113 106.110 0.133
201810 0.115 105.952 0.136
201901 0.120 105.557 0.142
201904 0.118 107.453 0.137
201907 0.119 108.243 0.138
201910 0.119 107.927 0.138
202001 0.120 108.085 0.139
202004 0.117 107.216 0.136
202007 0.125 108.401 0.144
202010 0.128 108.638 0.147
202101 0.129 109.192 0.148
202104 0.131 110.851 0.148
202107 0.150 112.431 0.167
202110 0.150 113.695 0.165
202201 0.152 114.801 0.166
202204 0.150 118.357 0.159
202207 0.155 120.964 0.160
202210 0.154 121.517 0.159
202301 0.148 121.596 0.152
202304 0.147 123.571 0.149
202307 0.147 124.914 0.147
202310 0.148 125.310 0.148
202401 0.147 125.072 0.147

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.


Solution Financial  (TSX:SFI) 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.


Solution Financial Cyclically Adjusted PB Ratio Related Terms

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


Solution Financial (TSX:SFI) Business Description

Traded in Other Exchanges
Address
Unit 137 - 8680 Cambie Road, Richmond, BC, CAN, V6X 4K1
Solution Financial Inc is engaged in retail sales, leases, and financing for high-end automotive vehicles, ultra-luxury vehicles, boats, and commercial equipment. The firm generates the majority of its revenue through the sales and leases of vehicles.
Executives
John Randall Smyth Director

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