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Tower (ASX:TWR) Cyclically Adjusted PS Ratio : 1.10 (As of Dec. 11, 2024)


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What is Tower Cyclically Adjusted PS Ratio?

As of today (2024-12-11), Tower's current share price is A$1.195. Tower's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Sep24 was A$1.09. Tower's Cyclically Adjusted PS Ratio for today is 1.10.

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

ASX:TWR' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.31   Med: 0.54   Max: 1.17
Current: 1.09

During the past 13 years, Tower's highest Cyclically Adjusted PS Ratio was 1.17. The lowest was 0.31. And the median was 0.54.

ASX:TWR's Cyclically Adjusted PS Ratio is ranked worse than
50.77% of 388 companies
in the Insurance industry
Industry Median: 1.07 vs ASX:TWR: 1.09

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Tower's adjusted revenue per share data of for the fiscal year that ended in Sep24 was A$1.195. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is A$1.09 for the trailing ten years ended in Sep24.

Shiller PE for Stocks: The True Measure of Stock Valuation


Tower Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Tower's Cyclically Adjusted PS 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.

Tower Cyclically Adjusted PS Ratio Chart

Tower Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.49 0.57 0.57 0.52 1.13

Tower Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Cyclically Adjusted PS 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 0.57 - 0.52 - 1.13

Competitive Comparison of Tower's Cyclically Adjusted PS Ratio

For the Insurance - Property & Casualty subindustry, Tower's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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.


Tower's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Tower's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Tower's Cyclically Adjusted PS Ratio falls into.



Tower Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS 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 PS Ratio.

Tower's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=1.195/1.09
=1.10

* 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.

Tower's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Sep24 is calculated as:

For example, Tower's adjusted Revenue per Share data for the fiscal year that ended in Sep24 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Sep24 (Change)*Current CPI (Sep24)
=1.195/130.8551*130.8551
=1.195

Current CPI (Sep24) = 130.8551.

Tower Annual Data

Revenue per Share CPI Adj_RevenuePerShare
201509 1.049 100.396 1.367
201609 1.167 100.813 1.515
201709 1.112 102.731 1.416
201809 0.806 104.684 1.007
201909 0.775 106.218 0.955
202009 0.725 107.751 0.880
202109 0.781 113.067 0.904
202209 0.803 121.245 0.867
202309 1.002 128.095 1.024
202409 1.195 130.855 1.195

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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.


Tower  (ASX:TWR) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Tower Cyclically Adjusted PS Ratio Related Terms

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


Tower Business Description

Industry
Traded in Other Exchanges
Address
136 Fanshawe Street, Level 5, PO Box 90347, Auckland, NTL, NZL, 1142
Tower Ltd is a general insurance company. The company provides insurance services namely car, house, contents, travel, business, boat insurance among others. The company has two geographical segments, New Zealand General Insurance, and Pacific Islands General Insurance. The company derives majority of its revenue from New Zealand segment.

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