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ERJ (Embraer) Cyclically Adjusted PB Ratio : 2.93 (As of May. 10, 2025)


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What is Embraer Cyclically Adjusted PB Ratio?

As of today (2025-05-10), Embraer's current share price is $48.21. Embraer's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2024 was $16.46. Embraer's Cyclically Adjusted PB Ratio for today is 2.93.

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

ERJ' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.34   Med: 1.22   Max: 2.97
Current: 2.72

During the past years, Embraer's highest Cyclically Adjusted PB Ratio was 2.97. The lowest was 0.34. And the median was 1.22.

ERJ's Cyclically Adjusted PB Ratio is ranked worse than
50.75% of 199 companies
in the Aerospace & Defense industry
Industry Median: 2.71 vs ERJ: 2.72

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.

Embraer's adjusted book value per share data for the three months ended in Dec. 2024 was $16.746. 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 $16.46 for the trailing ten years ended in Dec. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Embraer Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Embraer'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.

Embraer Cyclically Adjusted PB Ratio Chart

Embraer Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.48 1.18 0.63 0.93 2.23

Embraer Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 0.93 1.37 1.47 1.93 2.23

Competitive Comparison of Embraer's Cyclically Adjusted PB Ratio

For the Aerospace & Defense subindustry, Embraer'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.


Embraer's Cyclically Adjusted PB Ratio Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Embraer's Cyclically Adjusted PB Ratio distribution charts can be found below:

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


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Embraer 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.

Embraer's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=48.21/16.46
=2.93

* 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.

Embraer's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=16.746/164.7402*164.7402
=16.746

Current CPI (Dec. 2024) = 164.7402.

Embraer Quarterly Data

Book Value per Share CPI Adj_Book
201503 19.964 97.799 33.629
201506 20.664 100.006 34.040
201509 19.891 101.392 32.319
201512 20.310 104.247 32.096
201603 20.893 106.979 32.174
201606 20.279 108.851 30.691
201609 20.087 109.986 30.087
201612 20.932 110.802 31.122
201703 21.246 111.869 31.287
201706 21.482 112.115 31.565
201709 22.165 112.777 32.378
201712 22.177 114.068 32.029
201803 22.213 114.868 31.857
201806 21.255 117.038 29.918
201809 21.081 117.881 29.461
201812 20.915 118.340 29.116
201903 20.504 120.124 28.120
201906 20.730 120.977 28.229
201909 20.134 121.292 27.346
201912 19.116 123.436 25.513
202003 17.330 124.092 23.007
202006 15.658 123.557 20.877
202009 15.218 125.095 20.041
202012 15.187 129.012 19.393
202103 14.630 131.660 18.306
202106 14.986 133.871 18.442
202109 14.672 137.913 17.526
202112 14.527 141.992 16.854
202203 14.419 146.537 16.210
202206 14.651 149.784 16.114
202209 13.407 147.800 14.944
202212 13.980 150.207 15.333
202303 13.718 153.352 14.737
202306 0.000 154.519 0.000
202309 0.000 155.464 0.000
202312 15.172 157.148 15.905
202403 15.175 159.372 15.686
202406 15.589 161.052 15.946
202409 17.063 162.342 17.315
202412 16.746 164.740 16.746

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.


Embraer  (NYSE:ERJ) 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.


Embraer Cyclically Adjusted PB Ratio Related Terms

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


Embraer Business Description

Address
Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Eldorado Business Tower, Pinheiros, SP, BRA, 05425-070
Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the various segments namely Commercial Aviation, Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment.