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Nestle India (BOM:500790) Cyclically Adjusted PB Ratio : 55.52 (As of Dec. 14, 2024)


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What is Nestle India Cyclically Adjusted PB Ratio?

As of today (2024-12-14), Nestle India's current share price is ₹2253.95. Nestle India's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2024 was ₹40.60. Nestle India's Cyclically Adjusted PB Ratio for today is 55.52.

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

BOM:500790' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 40.57   Med: 50.49   Max: 64.26
Current: 55.84

During the past years, Nestle India's highest Cyclically Adjusted PB Ratio was 64.26. The lowest was 40.57. And the median was 50.49.

BOM:500790's Cyclically Adjusted PB Ratio is ranked worse than
99.3% of 1277 companies
in the Consumer Packaged Goods industry
Industry Median: 1.47 vs BOM:500790: 55.84

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.

Nestle India's adjusted book value per share data for the three months ended in Sep. 2024 was ₹40.486. 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 ₹40.60 for the trailing ten years ended in Sep. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Nestle India Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Nestle India'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.

Nestle India Cyclically Adjusted PB Ratio Chart

Nestle India Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 48.33 52.73 53.34

Nestle India Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Jun24 Sep24
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 - 59.08 - - 66.23

Competitive Comparison of Nestle India's Cyclically Adjusted PB Ratio

For the Packaged Foods subindustry, Nestle India'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.


Nestle India's Cyclically Adjusted PB Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle India's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



Nestle India 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.

Nestle India's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=2253.95/40.6
=55.52

* 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.

Nestle India's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2024 is calculated as:

For example, Nestle India's adjusted Book Value per Share data for the three months ended in Sep. 2024 was:

Adj_Book=Book Value per Share/CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=40.486/157.8822*157.8822
=40.486

Current CPI (Sep. 2024) = 157.8822.

Nestle India Quarterly Data

Book Value per Share CPI Adj_Book
201406 28.783 94.103 48.291
201409 0.000 96.780 0.000
201412 29.427 96.780 48.006
201503 0.000 97.163 0.000
201506 30.190 99.841 47.741
201509 0.000 101.753 0.000
201512 31.487 102.901 48.311
201603 0.000 102.518 0.000
201606 32.862 105.961 48.964
201609 0.000 105.961 0.000
201612 34.044 105.196 51.095
201703 0.000 105.196 0.000
201706 35.211 107.109 51.902
201709 0.000 109.021 0.000
201712 35.478 109.404 51.199
201803 0.000 109.786 0.000
201806 38.532 111.317 54.651
201809 0.000 115.142 0.000
201812 37.976 115.142 52.073
201903 0.000 118.202 0.000
201906 41.434 120.880 54.117
201909 0.000 123.175 0.000
201912 19.902 126.235 24.891
202003 0.000 124.705 0.000
202006 23.635 127.000 29.382
202009 0.000 130.118 0.000
202012 20.944 130.889 25.263
202103 0.000 131.771 0.000
202106 23.207 134.084 27.326
202109 0.000 135.847 0.000
202112 20.187 138.161 23.069
202203 0.000 138.822 0.000
202206 24.148 142.347 26.783
202209 0.000 144.661 0.000
202212 25.506 145.763 27.627
202303 0.000 146.865 0.000
202306 29.630 150.280 31.129
202309 0.000 151.492 0.000
202406 0.000 155.789 0.000
202409 40.486 157.882 40.486

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.


Nestle India  (BOM:500790) 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.


Nestle India Cyclically Adjusted PB Ratio Related Terms

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


Nestle India Business Description

Traded in Other Exchanges
Address
Nestle House, Jacaranda Marg, M Block, DLF City, Phase II, Gurugram, HR, IND, 122 002
Nestle India Ltd is a subsidiary of Nestle of Switzerland with business divided into milk products and nutrition, beverages, prepared dishes and cooking aids, chocolate and confectionery, and vending food services. Milk products and nutrition consist of nutritional products for infants and pregnant and breastfeeding mothers. The Powdered and Liquid Beverages product division sells tea and instant coffee under the Nestea, Nescafe Classic, and Nescafe Gold brands. Prepared dishes and cooking aids comprise food-enriching flavors under the Maggi brand. The Confectionery products in chocolate and confectionery are KitKat, Munch Nuts, and Nestle Alpino. The company's business activity falls within a single operating segment, namely Food.

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