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Magic Software Enterprises (Magic Software Enterprises) Cyclically Adjusted PS Ratio : 1.44 (As of Apr. 28, 2024)


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What is Magic Software Enterprises Cyclically Adjusted PS Ratio?

As of today (2024-04-28), Magic Software Enterprises's current share price is $11.64. Magic Software Enterprises's Cyclically Adjusted Revenue per Share for the quarter that ended in Sep. 2023 was $8.07. Magic Software Enterprises's Cyclically Adjusted PS Ratio for today is 1.44.

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

MGIC' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.03   Med: 2.19   Max: 3.38
Current: 1.45

During the past years, Magic Software Enterprises's highest Cyclically Adjusted PS Ratio was 3.38. The lowest was 1.03. And the median was 2.19.

MGIC's Cyclically Adjusted PS Ratio is ranked better than
56.09% of 1412 companies
in the Software industry
Industry Median: 1.87 vs MGIC: 1.45

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.

Magic Software Enterprises's adjusted revenue per share data for the three months ended in Sep. 2023 was $2.636. 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 $8.07 for the trailing ten years ended in Sep. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Magic Software Enterprises Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Magic Software Enterprises'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.

Magic Software Enterprises Cyclically Adjusted PS Ratio Chart

Magic Software Enterprises Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.82 1.87 2.55 2.79 2.00

Magic Software Enterprises Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 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 2.02 2.00 1.62 1.61 1.40

Competitive Comparison of Magic Software Enterprises's Cyclically Adjusted PS Ratio

For the Information Technology Services subindustry, Magic Software Enterprises'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.


Magic Software Enterprises's Cyclically Adjusted PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Magic Software Enterprises's Cyclically Adjusted PS Ratio distribution charts can be found below:

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



Magic Software Enterprises 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.

Magic Software Enterprises's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=11.64/8.07
=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.

Magic Software Enterprises's Cyclically Adjusted Revenue per Share for the quarter that ended in Sep. 2023 is calculated as:

For example, Magic Software Enterprises's adjusted Revenue per Share data for the three months ended in Sep. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=2.636/129.8595*129.8595
=2.636

Current CPI (Sep. 2023) = 129.8595.

Magic Software Enterprises Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201312 1.116 98.326 1.474
201403 1.027 99.695 1.338
201406 0.914 100.560 1.180
201409 0.904 100.428 1.169
201412 0.963 99.070 1.262
201503 0.912 99.621 1.189
201506 0.956 100.684 1.233
201509 1.020 100.392 1.319
201512 1.077 99.792 1.401
201603 1.004 100.470 1.298
201606 1.064 101.688 1.359
201609 1.223 101.861 1.559
201612 1.238 101.863 1.578
201703 1.364 102.862 1.722
201706 1.468 103.349 1.845
201709 1.472 104.136 1.836
201712 1.484 104.011 1.853
201803 1.562 105.290 1.927
201806 1.573 106.317 1.921
201809 1.473 106.507 1.796
201812 1.477 105.998 1.809
201903 1.466 107.251 1.775
201906 1.573 108.070 1.890
201909 1.752 108.329 2.100
201912 1.855 108.420 2.222
202003 1.737 108.902 2.071
202006 1.764 108.767 2.106
202009 1.935 109.815 2.288
202012 2.129 109.897 2.516
202103 2.186 111.754 2.540
202106 2.427 114.631 2.749
202109 2.461 115.734 2.761
202112 2.708 117.630 2.990
202203 2.826 121.301 3.025
202206 2.788 125.017 2.896
202209 2.930 125.227 3.038
202212 2.996 125.222 3.107
202303 2.899 127.348 2.956
202306 2.800 128.729 2.825
202309 2.636 129.860 2.636

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.


Magic Software Enterprises  (NAS:MGIC) 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.


Magic Software Enterprises Cyclically Adjusted PS Ratio Related Terms

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


Magic Software Enterprises (Magic Software Enterprises) Business Description

Traded in Other Exchanges
Address
Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.

Magic Software Enterprises (Magic Software Enterprises) Headlines