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Ferguson (LSE:FERG) Cyclically Adjusted PB Ratio : 9.00 (As of May. 15, 2024)


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What is Ferguson Cyclically Adjusted PB Ratio?

As of today (2024-05-15), Ferguson's current share price is £172.90. Ferguson's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 was £19.22. Ferguson's Cyclically Adjusted PB Ratio for today is 9.00.

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

LSE:FERG' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.87   Med: 6.9   Max: 9.54
Current: 9

During the past years, Ferguson's highest Cyclically Adjusted PB Ratio was 9.54. The lowest was 4.87. And the median was 6.90.

LSE:FERG's Cyclically Adjusted PB Ratio is ranked worse than
91.06% of 123 companies
in the Industrial Distribution industry
Industry Median: 1.31 vs LSE:FERG: 9.00

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.

Ferguson's adjusted book value per share data for the three months ended in Jan. 2024 was £21.004. 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 £19.22 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ferguson Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Ferguson'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.

Ferguson Cyclically Adjusted PB Ratio Chart

Ferguson Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.81 5.45 7.75 5.97 6.82

Ferguson Quarterly Data
Jan18 Jul18 Jan19 Jul19 Jan20 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 6.36 6.05 6.82 6.22 7.73

Competitive Comparison of Ferguson's Cyclically Adjusted PB Ratio

For the Industrial Distribution subindustry, Ferguson'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.


Ferguson's Cyclically Adjusted PB Ratio Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



Ferguson 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.

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

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=172.90/19.22
=9.00

* 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.

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

For example, Ferguson'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)
=21.004/130.0000*130.0000
=21.004

Current CPI (Jan. 2024) = 130.0000.

Ferguson Quarterly Data

Book Value per Share CPI Adj_Book
200801 6.002 84.100 9.278
200807 5.771 86.600 8.663
200901 12.476 86.600 18.728
200907 13.845 88.000 20.453
201001 12.748 88.800 18.663
201007 12.573 90.000 18.161
201101 13.298 91.800 18.832
201107 13.726 93.500 19.084
201201 0.000 94.700 0.000
201207 12.567 95.700 17.071
201301 10.753 97.000 14.411
201307 12.189 98.000 16.169
201401 10.922 98.700 14.386
201407 11.324 99.600 14.780
201501 9.990 99.200 13.092
201507 10.610 100.000 13.793
201601 11.122 99.900 14.473
201607 12.209 100.900 15.730
201701 13.053 101.800 16.669
201707 14.561 103.500 18.289
201801 13.969 104.500 17.378
201807 13.303 105.900 16.330
201901 14.336 106.400 17.516
201907 15.178 108.000 18.270
202001 13.905 108.300 16.691
202007 15.296 109.200 18.210
202010 0.000 109.200 0.000
202101 14.634 109.300 17.405
202104 0.000 110.400 0.000
202107 16.293 111.400 19.013
202110 16.987 113.400 19.474
202201 16.278 114.600 18.465
202204 16.108 119.000 17.597
202207 18.431 121.200 19.769
202210 21.704 124.300 22.699
202301 18.689 124.800 19.468
202304 18.496 128.300 18.741
202307 19.134 129.000 19.282
202310 21.594 130.200 21.561
202401 21.004 130.000 21.004

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.


Ferguson  (LSE:FERG) 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.


Ferguson Cyclically Adjusted PB Ratio Related Terms

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


Ferguson (LSE:FERG) Business Description

Traded in Other Exchanges
Address
1020 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, GBR, RG41 5TS
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.

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