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Sonic HealthcareSTU:SAB +2.81%71 Cyclically Adjusted PB Ratio is 1.55 as of Jul. 26, 2026, which is 46% below its 10-year median of 2.89. GuruFocus rates STU:SAB with a GF Score™ of 71/100 and a GF Value™ of €19.86 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 133 Medical Diagnostics & Research companies, Sonic Healthcare ranks better than 53.38% on this metric.
The historical rank and industry rank for Sonic Healthcare's Cyclically Adjusted PB Ratio or its related term are showing as below:
STU:SAB'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.25 Med: 2.89 Max: 4.61
Current: 1.42
During the past 13 years, Sonic Healthcare's highest Cyclically Adjusted PB Ratio was 4.61. The lowest was 1.25. And the median was 2.89.
STU:SAB's Cyclically Adjusted PB Ratio is ranked better than 53.38% of 133
companies
in the Medical Diagnostics & Research industry
Industry Median: 1.75
vs STU:SAB: 1.42
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.
Sonic Healthcare's adjusted book value per share data of for the fiscal year that ended in Jun25 was €9.780. 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 €8.29 for the trailing ten years ended in Jun25.
Shiller PE for Stocks: The True Measure of Stock Valuation
Sonic Healthcare (STU:SAB) 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.
Sonic Healthcare Cyclically Adjusted PB Ratio Related Terms
Sonic Healthcare Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Sonic Healthcare'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.
Sonic Healthcare Cyclically Adjusted PB Ratio Chart
STU:SAB vs TMO, DHR, IDXX: Cyclically Adjusted PB Ratio Comparison
For the Diagnostics & Research subindustry, Sonic Healthcare'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.
Sonic Healthcare Cyclically Adjusted PB Ratio vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sonic Healthcare's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Sonic Healthcare's Cyclically Adjusted PB Ratio falls into.
Sonic Healthcare 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.
Sonic Healthcare's Cyclically Adjusted PB Ratio for today is calculated as
* 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.
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.
What does a Cyclically Adjusted PB Ratio of 1.55 mean?
Sonic Healthcare (STU:SAB) has a Cyclically Adjusted PB Ratio of 1.55 as of Jul. 26, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Sonic Healthcare and its competitors. This is 46% below median its historical median of 2.89. Over the past decade, Sonic Healthcare's Cyclically Adjusted PB Ratio has ranged from 1.25 to 4.61. According to the industry distribution chart, Sonic Healthcare ranks #62 out of 133 companies in the Medical Diagnostics & Research industry, placing it in the top 46.6%.
Is Sonic Healthcare's Cyclically Adjusted PB Ratio too high?
Sonic Healthcare's current Cyclically Adjusted PB Ratio of 1.55 is 46% below median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 4.61. The Medical Diagnostics & Research industry median Cyclically Adjusted PB Ratio is 1.75. Sonic Healthcare's value of 1.55 is 11.4% below this industry median. Based on the distribution chart, Sonic Healthcare ranks #62 out of 133 companies in the Medical Diagnostics & Research industry, which is above the industry midpoint. Overall, Sonic Healthcare has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Healthcare's Cyclically Adjusted PB Ratio compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Sonic Healthcare ranks #62 out of 133 companies for Cyclically Adjusted PB Ratio. This puts Sonic Healthcare in the upper half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.75. Sonic Healthcare's value of 1.55 is 11.4% below this benchmark. Historically, Sonic Healthcare's own Cyclically Adjusted PB Ratio has ranged from 1.25 to 4.61 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 1.75, Sonic Healthcare has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Medical Diagnostics & Research company?
The median Cyclically Adjusted PB Ratio among Medical Diagnostics & Research companies is 1.75, based on 133 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonic Healthcare's current Cyclically Adjusted PB Ratio of 1.55 is 11.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Sonic Healthcare and its competitors. For the Medical Diagnostics & Research industry, the median Cyclically Adjusted PB Ratio is 1.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Healthcare's current Cyclically Adjusted PB Ratio is 1.55, which is 46% below median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sonic Healthcare (STU:SAB) is currently considered Significantly Undervalued. The stock's GF Value™ is €19.86, compared to a current price of €12.88 — trading 35.2% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 1.55, which is 46% below median its 10-year median of 2.89 and 11.4% below the Medical Diagnostics & Research industry median of 1.75. Sonic Healthcare's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Sonic Healthcare (STU:SAB), the current Cyclically Adjusted PB Ratio is 1.55 as of Jul. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sonic Healthcare (STU:SAB) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Healthcare stock appears to be undervalued.
The current stock price of €12.88 is trading 35.2% below its estimated GF Value™ of €19.86.
GuruFocus considers Sonic Healthcare to be Significantly Undervalued.
Key valuation signals for STU:SAB:
Cyclically Adjusted PB Ratio: 1.55 (46% below median its 10-year median of 2.89)
GF Value™: €19.86 vs. price of €12.88 (35.2% below fair value)
Industry Position: 11.4% below the Medical Diagnostics & Research median (#62 of 133)
No single metric tells the full story. See the STU:SAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the UK, the second-largest in Belgium and New Zealand, and the third largest in the US. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 35% of group revenue in Australia and New Zealand, 25% in the US, and 40% in Europe.
71GF Score
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