GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Rolls-Royce Holdings PLC (OTCPK:RYCEY) » Definitions » Cyclically Adjusted PB Ratio

Rolls-Royce Holdings (Rolls-Royce Holdings) Cyclically Adjusted PB Ratio : (As of Apr. 30, 2024)


View and export this data going back to . Start your Free Trial

What is Rolls-Royce Holdings Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Rolls-Royce Holdings Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Rolls-Royce Holdings'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.

Rolls-Royce Holdings Cyclically Adjusted PB Ratio Chart

Rolls-Royce Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.80 2.33 3.57 5.72 -

Rolls-Royce Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 3.57 - 5.72 - -

Competitive Comparison of Rolls-Royce Holdings's Cyclically Adjusted PB Ratio

For the Aerospace & Defense subindustry, Rolls-Royce Holdings'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.


Rolls-Royce Holdings's Cyclically Adjusted PB Ratio Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where Rolls-Royce Holdings's Cyclically Adjusted PB Ratio falls into.



Rolls-Royce Holdings 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.

Rolls-Royce Holdings's Cyclically Adjusted Book per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Rolls-Royce Holdings's adjusted Book Value per Share data for the fiscal year that ended in Dec23 was:

Adj_Book=Book Value per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=-0.557/130.0000*130.0000
=-0.557

Current CPI (Dec23) = 130.0000.

Rolls-Royce Holdings Annual Data

Book Value per Share CPI Adj_Book
201412 1.821 99.900 2.370
201512 1.401 100.400 1.814
201612 0.434 102.200 0.552
201712 0.232 105.000 0.287
201812 -0.246 107.100 -0.299
201912 -0.786 108.500 -0.942
202012 -0.787 109.400 -0.935
202112 -0.741 114.700 -0.840
202212 -0.881 125.300 -0.914
202312 -0.557 130.000 -0.557

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.


Rolls-Royce Holdings  (OTCPK:RYCEY) 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.


Rolls-Royce Holdings Cyclically Adjusted PB Ratio Related Terms

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


Rolls-Royce Holdings (Rolls-Royce Holdings) Business Description

Traded in Other Exchanges
Address
90 York Way, Kings Place, London, GBR, N1 9FX
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.

Rolls-Royce Holdings (Rolls-Royce Holdings) Headlines

From GuruFocus

Rolls Royce: The Perfect Storm in Seven Minutes

By Cody Eustice Cody Eustice 08-31-2015

Top 5 3rd Quarter Trades of Boothe Investment Group, Inc.

By GuruFocus Research GuruFocus Editor 10-26-2022

David Herro Comments on Rolls-Royce

By Sydnee Gatewood Sydnee Gatewood 04-13-2021

David Herro Comments on Rolls-Royce

By Sydnee Gatewood Sydnee Gatewood 07-09-2020

David Herro Comments on Rolls-Royce

By Sydnee Gatewood Sydnee Gatewood 10-13-2020

Rolls Royce and the Sequoia letter

By Bronte Capital Bronte Capital 03-15-2015

Sequoia Fund Comments on Rolls-Royce

By Holly LaFon Holly LaFon 03-01-2016

Ruane Cunniff Comments on Rolls-Royce

By Sydnee Gatewood Sydnee Gatewood 01-24-2020