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The Wendy's Co (STU:TQK) Cyclically Adjusted PB Ratio : 5.37 (As of Jun. 08, 2024)


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What is The Wendy's Co Cyclically Adjusted PB Ratio?

As of today (2024-06-08), The Wendy's Co's current share price is €15.56. The Wendy's Co's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was €2.90. The Wendy's Co's Cyclically Adjusted PB Ratio for today is 5.37.

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

STU:TQK' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.99   Med: 3.86   Max: 6.66
Current: 5.28

During the past years, The Wendy's Co's highest Cyclically Adjusted PB Ratio was 6.66. The lowest was 0.99. And the median was 3.86.

STU:TQK's Cyclically Adjusted PB Ratio is ranked worse than
81.03% of 232 companies
in the Restaurants industry
Industry Median: 2.115 vs STU:TQK: 5.28

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.

The Wendy's Co's adjusted book value per share data for the three months ended in Mar. 2024 was €1.316. 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 €2.90 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Wendy's Co Cyclically Adjusted PB Ratio Historical Data

The historical data trend for The Wendy's Co'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.

The Wendy's Co Cyclically Adjusted PB Ratio Chart

The Wendy's Co 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 5.24 5.61 6.31 6.33 6.05

The Wendy's Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 6.18 6.31 6.08 6.05 5.97

Competitive Comparison of The Wendy's Co's Cyclically Adjusted PB Ratio

For the Restaurants subindustry, The Wendy's Co'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.


The Wendy's Co's Cyclically Adjusted PB Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



The Wendy's Co 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.

The Wendy's Co's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=15.56/2.9
=5.37

* 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.

The Wendy's Co's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, The Wendy's Co's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.316/131.7762*131.7762
=1.316

Current CPI (Mar. 2024) = 131.7762.

The Wendy's Co Quarterly Data

Book Value per Share CPI Adj_Book
201406 3.499 100.560 4.585
201409 3.666 100.428 4.810
201412 3.808 99.070 5.065
201503 4.344 99.621 5.746
201506 4.254 100.684 5.568
201509 2.300 100.392 3.019
201512 2.538 99.792 3.351
201603 2.452 100.470 3.216
201606 2.343 101.688 3.036
201609 2.335 101.861 3.021
201612 2.037 101.863 2.635
201703 1.993 102.862 2.553
201706 1.774 103.349 2.262
201709 1.600 104.136 2.025
201712 2.014 104.011 2.552
201803 1.563 105.290 1.956
201806 1.548 106.317 1.919
201809 2.817 106.507 3.485
201812 2.465 105.998 3.064
201903 2.455 107.251 3.016
201906 2.482 108.070 3.026
201909 2.560 108.329 3.114
201912 2.066 108.420 2.511
202003 1.834 108.902 2.219
202006 1.921 108.767 2.327
202009 1.976 109.815 2.371
202012 2.014 109.897 2.415
202103 1.972 111.754 2.325
202106 2.123 114.631 2.441
202109 2.085 115.734 2.374
202112 1.789 117.630 2.004
202203 1.916 121.301 2.081
202206 1.880 125.017 1.982
202209 2.074 125.227 2.182
202212 2.063 125.222 2.171
202303 1.851 127.348 1.915
202306 1.719 128.729 1.760
202309 1.547 129.860 1.570
202312 1.383 129.419 1.408
202403 1.316 131.776 1.316

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.


The Wendy's Co  (STU:TQK) 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.


The Wendy's Co Cyclically Adjusted PB Ratio Related Terms

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


The Wendy's Co (STU:TQK) Business Description

Traded in Other Exchanges
Address
One Dave Thomas Boulevard, Dublin, OH, USA, 43017
The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $11.7 billion in 2022, narrowly edging Burger King ($10.3 billion) and clocking in well behind wide-moat McDonald's ($48.1 billion). After divestitures of Tim Hortons (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spanned almost 7,100 total units in 30 countries as of year-end 2022. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for 94% of stores, and through franchise flipping and advisory fees.

The Wendy's Co (STU:TQK) Headlines

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