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HDFC Life Insurance Company Limited (BOM:540777) Cyclically Adjusted PS Ratio : 2.00 (As of May. 14, 2024)


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What is HDFC Life Insurance Company Limited Cyclically Adjusted PS Ratio?

As of today (2024-05-14), HDFC Life Insurance Company Limited's current share price is ₹561.70. HDFC Life Insurance Company Limited's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Mar24 was ₹280.79. HDFC Life Insurance Company Limited's Cyclically Adjusted PS Ratio for today is 2.00.

The historical rank and industry rank for HDFC Life Insurance Company Limited's Cyclically Adjusted PS Ratio or its related term are showing as below:

BOM:540777' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.96   Med: 2.44   Max: 2.94
Current: 1.96

During the past 12 years, HDFC Life Insurance Company Limited's highest Cyclically Adjusted PS Ratio was 2.94. The lowest was 1.96. And the median was 2.44.

BOM:540777's Cyclically Adjusted PS Ratio is ranked worse than
77.34% of 406 companies
in the Insurance industry
Industry Median: 1.02 vs BOM:540777: 1.96

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.

HDFC Life Insurance Company Limited's adjusted revenue per share data of for the fiscal year that ended in Mar24 was ₹471.694. 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 ₹280.79 for the trailing ten years ended in Mar24.

Shiller PE for Stocks: The True Measure of Stock Valuation


HDFC Life Insurance Company Limited Cyclically Adjusted PS Ratio Historical Data

The historical data trend for HDFC Life Insurance Company Limited'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.

HDFC Life Insurance Company Limited Cyclically Adjusted PS Ratio Chart

HDFC Life Insurance Company Limited Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 2.63 2.10 2.25

HDFC Life Insurance Company Limited Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24
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 - 2.10 - - 2.25

Competitive Comparison of HDFC Life Insurance Company Limited's Cyclically Adjusted PS Ratio

For the Insurance - Life subindustry, HDFC Life Insurance Company Limited'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.


HDFC Life Insurance Company Limited's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

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

* The bar in red indicates where HDFC Life Insurance Company Limited's Cyclically Adjusted PS Ratio falls into.



HDFC Life Insurance Company Limited 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.

HDFC Life Insurance Company Limited's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=561.70/280.79
=2.00

* 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.

HDFC Life Insurance Company Limited's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Mar24 is calculated as:

For example, HDFC Life Insurance Company Limited's adjusted Revenue per Share data for the fiscal year that ended in Mar24 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar24 (Change)*Current CPI (Mar24)
=471.694/153.2548*153.2548
=471.694

Current CPI (Mar24) = 153.2548.

HDFC Life Insurance Company Limited Annual Data

Revenue per Share CPI Adj_RevenuePerShare
201503 135.335 97.163 213.464
201603 90.199 102.518 134.839
201703 152.905 105.196 222.760
201803 160.440 109.786 223.964
201903 189.979 118.202 246.317
202003 142.117 124.705 174.653
202103 355.310 131.771 413.241
202203 329.476 138.822 363.731
202303 328.880 146.865 343.190
202403 471.694 153.255 471.694

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.


HDFC Life Insurance Company Limited  (BOM:540777) 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.


HDFC Life Insurance Company Limited Cyclically Adjusted PS Ratio Related Terms

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


HDFC Life Insurance Company Limited (BOM:540777) Business Description

Traded in Other Exchanges
Address
N.M. Joshi Marg, 13th Floor, Lodha Excelus, Apollo Mills Compound, Mahalaxmi, Mumbai, MH, IND, 400 011
HDFC Life Insurance Company Limited is a long-term life insurance company. It offers individual and group insurance solutions such as Protection, Pension, Savings and Investment, and Health, along with Children's and Women's Plans. The company operates through segments namely, Participating Life (Individual & Group), Participating Pension (Individual & Group), Non-Participating Life (Individual & Group), Non-Participating Pension (Individual & Group), Non-Participating Life Group Variable, Non-Participating Pension Group Variable, Non-Participating - Annuity, Non Participating - Individual & Group Health, Unit Linked - Individual Life, Unit Linked - Individual Pension, Unit Linked - Group Life and Unit Linked - Group Pension.

HDFC Life Insurance Company Limited (BOM:540777) Headlines

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