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Lonrho (LSE:LONR) Cyclically Adjusted PB Ratio : (As of May. 14, 2024)


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What is Lonrho Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Lonrho Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Lonrho'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.

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Lonrho Cyclically Adjusted PB Ratio Chart

Lonrho Annual Data
Trend Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Dec12
Cyclically Adjusted PB Ratio
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Lonrho Semi-Annual Data
Mar02 Sep02 Mar03 Sep03 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Jun12 Dec12
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Competitive Comparison of Lonrho's Cyclically Adjusted PB Ratio

For the Conglomerates subindustry, Lonrho'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.


Lonrho's Cyclically Adjusted PB Ratio Distribution in the Conglomerates Industry

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

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



Lonrho 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.

Lonrho's Cyclically Adjusted Book per Share for the fiscal year that ended in Dec12 is calculated as:

For example, Lonrho's adjusted Book Value per Share data for the fiscal year that ended in Dec12 was:

Adj_Book=Book Value per Share/CPI of Dec12 (Change)*Current CPI (Dec12)
=0.095/97.3000*97.3000
=0.095

Current CPI (Dec12) = 97.3000.

Lonrho Annual Data

Book Value per Share CPI Adj_Book
200309 0.117 77.000 0.148
200409 0.123 77.900 0.154
200509 0.132 79.900 0.161
200609 0.238 81.900 0.283
200709 0.169 83.500 0.197
200809 0.188 87.500 0.209
200909 0.109 88.300 0.120
201009 0.106 90.400 0.114
201109 0.000 94.500 0.000
201212 0.095 97.300 0.095

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.


Lonrho  (LSE:LONR) 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.


Lonrho Cyclically Adjusted PB Ratio Related Terms

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


Lonrho (LSE:LONR) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Level 2, 25 Berkeley Square, London, GBR, W1J 6HB
Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service offshore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.

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