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WEN (The Wendy's Co) Cyclically Adjusted PB Ratio : 4.22 (As of May. 23, 2025)


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

As of today (2025-05-23), The Wendy's Co's current share price is $11.44. The Wendy's Co's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2025 was $2.71. The Wendy's Co's Cyclically Adjusted PB Ratio for today is 4.22.

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

WEN' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.66   Med: 5.01   Max: 6.7
Current: 4.24

During the past years, The Wendy's Co's highest Cyclically Adjusted PB Ratio was 6.70. The lowest was 1.66. And the median was 5.01.

WEN's Cyclically Adjusted PB Ratio is ranked worse than
79.67% of 241 companies
in the Restaurants industry
Industry Median: 1.81 vs WEN: 4.24

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. 2025 was $0.665. 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 $2.71 for the trailing ten years ended in Mar. 2025.

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 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.61 6.31 6.33 6.05 5.79

The Wendy's Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 5.97 5.55 5.96 5.79 5.39

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.


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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
=11.44/2.71
=4.22

* 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. 2025 is calculated as:

For example, The Wendy's Co's adjusted Book Value per Share data for the three months ended in Mar. 2025 was:

Adj_Book=Book Value per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=0.665/134.9266*134.9266
=0.665

Current CPI (Mar. 2025) = 134.9266.

The Wendy's Co Quarterly Data

Book Value per Share CPI Adj_Book
201506 4.775 100.684 6.399
201509 2.581 100.392 3.469
201512 2.765 99.792 3.738
201603 2.730 100.470 3.666
201606 2.633 101.688 3.494
201609 2.621 101.861 3.472
201612 2.149 101.863 2.847
201703 2.132 102.862 2.797
201706 1.994 103.349 2.603
201709 1.907 104.136 2.471
201712 2.383 104.011 3.091
201803 1.928 105.290 2.471
201806 1.808 106.317 2.295
201809 3.287 106.507 4.164
201812 2.804 105.998 3.569
201903 2.774 107.251 3.490
201906 2.804 108.070 3.501
201909 2.820 108.329 3.512
201912 2.296 108.420 2.857
202003 2.027 108.902 2.511
202006 2.163 108.767 2.683
202009 2.327 109.815 2.859
202012 2.451 109.897 3.009
202103 2.348 111.754 2.835
202106 2.558 114.631 3.011
202109 2.453 115.734 2.860
202112 2.022 117.630 2.319
202203 2.110 121.301 2.347
202206 1.987 125.017 2.145
202209 2.054 125.227 2.213
202212 2.185 125.222 2.354
202303 1.982 127.348 2.100
202306 1.863 128.729 1.953
202309 1.651 129.860 1.715
202312 1.508 129.419 1.572
202403 1.430 131.776 1.464
202406 1.341 132.554 1.365
202409 1.280 133.029 1.298
202412 1.272 133.157 1.289
202503 0.665 134.927 0.665

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  (NAS:WEN) 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 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 $12.6 billion in 2024, narrowly edging Burger King ($11.5 billion) and clocking in well behind wide-moat McDonald's ($51.1 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 more than 7,200 total stores in 30 countries as of year-end 2024. 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 roughly 94% of stores, and through franchise flipping and advisory fees.
Executives
Kenneth W Gilbert director C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Mich J Mathews-spradlin director ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Liliana Esposito officer: Chief Communications Officer ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Trian Fund Management, L.p. other: Schedule 13D Filer 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Kristin A Dolan director C/O MSG TWO PENN PLAZA, 26TH FLOOR, NEW YORK NY 10121
Juan Carlos Loredo officer: Global Chief Marketing Officer C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Joseph A Levato director C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Michelle Caruso-cabrera director C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Nelson Peltz director, 10 percent owner, officer: Chairman and CEO 223 SUNSET AVENUE, PALM BEACH FL 33480
Edward P Garden officer: Executive Vice President 223 SUNSET AVENUE, PALM BEACH FL 33480
Peter W May director, 10 percent owner, officer: President and COO 223 SUNSET AVENUE, PALM BEACH FL 33480
Matthew H. Peltz director 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Trian Partners Master Fund, L.p. other: Schedule 13D Filer 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Deepak Ajmani officer: Chief Operations Officer - U.S C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Suzanne M. Thuerk officer: Chief Accounting Officer ONE DAVE THOMAS BLVD., C/O THE WENDY'S COMPANY, DUBLIN OH 43017