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NEC (FRA:NEC1) Cyclically Adjusted PS Ratio : 0.85 (As of May. 16, 2024)


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What is NEC Cyclically Adjusted PS Ratio?

As of today (2024-05-16), NEC's current share price is €64.70. NEC's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €76.07. NEC's Cyclically Adjusted PS Ratio for today is 0.85.

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

FRA:NEC1' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.18   Med: 0.39   Max: 0.95
Current: 0.88

During the past years, NEC's highest Cyclically Adjusted PS Ratio was 0.95. The lowest was 0.18. And the median was 0.39.

FRA:NEC1's Cyclically Adjusted PS Ratio is ranked better than
70.71% of 1444 companies
in the Software industry
Industry Median: 1.85 vs FRA:NEC1: 0.88

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.

NEC's adjusted revenue per share data for the three months ended in Mar. 2024 was €24.980. 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 €76.07 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


NEC Cyclically Adjusted PS Ratio Historical Data

The historical data trend for NEC'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.

NEC Cyclically Adjusted PS Ratio Chart

NEC 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 0.34 0.56 0.45 0.43 0.90

NEC Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 0.43 0.58 0.69 0.69 0.90

Competitive Comparison of NEC's Cyclically Adjusted PS Ratio

For the Information Technology Services subindustry, NEC'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.


NEC's Cyclically Adjusted PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, NEC's Cyclically Adjusted PS Ratio distribution charts can be found below:

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



NEC 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.

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=64.70/76.07
=0.85

* 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.

NEC's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, NEC's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=24.98/107.2000*107.2000
=24.980

Current CPI (Mar. 2024) = 107.2000.

NEC Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 16.617 98.000 18.177
201409 20.185 98.500 21.968
201412 17.711 97.900 19.393
201503 27.568 97.900 30.187
201506 16.275 98.400 17.730
201509 20.605 98.500 22.425
201512 18.730 98.100 20.467
201603 26.629 97.900 29.159
201606 16.862 98.100 18.426
201609 22.987 98.000 25.145
201612 18.663 98.400 20.332
201703 27.741 98.100 30.314
201706 17.986 98.500 19.575
201709 20.565 98.800 22.313
201712 19.674 99.400 21.218
201803 25.707 99.200 27.780
201806 18.352 99.200 19.832
201809 21.293 99.900 22.849
201812 21.062 99.700 22.646
201903 26.943 99.700 28.970
201906 20.618 99.800 22.147
201909 25.854 100.100 27.688
201912 23.089 100.500 24.628
202003 29.776 100.300 31.824
202006 18.690 99.900 20.056
202009 21.723 99.900 23.310
202012 21.199 99.300 22.886
202103 26.969 99.900 28.940
202106 18.037 99.500 19.433
202109 20.702 100.100 22.170
202112 20.361 100.100 21.805
202203 25.793 101.100 27.349
202206 17.099 101.800 18.006
202209 20.624 103.100 21.444
202212 21.243 104.100 21.876
202303 27.330 104.400 28.063
202306 17.321 105.200 17.650
202309 20.040 106.200 20.229
202312 20.185 106.800 20.261
202403 24.980 107.200 24.980

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.


NEC  (FRA:NEC1) 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.


NEC Cyclically Adjusted PS Ratio Related Terms

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


NEC (FRA:NEC1) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » NEC Corp (FRA:NEC1) » Definitions » Cyclically Adjusted PS Ratio
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Address
7-1, Shiba 5-chome, Minato-ku, Tokyo, JPN, 108-8001
NEC Corp is a leading Japanese technology firm. It manufactures PCs, computer platforms, semiconductors, and display panels; builds broadband and mobile communication networks; and provides systems-integration services. The firm's research and development has funded accomplishments such as breakthroughs in quantum computing and PDA speech-translation software.

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