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Digital River (FRA:RIV) Cyclically Adjusted PS Ratio : (As of Jun. 20, 2024)


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What is Digital River Cyclically Adjusted PS Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Digital River Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Digital River'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.

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Digital River Cyclically Adjusted PS Ratio Chart

Digital River Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Cyclically Adjusted PS Ratio
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Digital River Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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Competitive Comparison of Digital River's Cyclically Adjusted PS Ratio

For the Software - Application subindustry, Digital River'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.


Digital River's Cyclically Adjusted PS Ratio Distribution in the Software Industry

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

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



Digital River 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.

Digital River's Cyclically Adjusted Revenue per Share for the quarter that ended in Sep. 2014 is calculated as:

For example, Digital River's adjusted Revenue per Share data for the three months ended in Sep. 2014 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Sep. 2014 (Change)*Current CPI (Sep. 2014)
=2.288/100.4278*100.4278
=2.288

Current CPI (Sep. 2014) = 100.4278.

Digital River Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
200412 0.864 80.290 1.081
200503 0.997 81.555 1.228
200506 1.023 82.062 1.252
200509 1.035 83.876 1.239
200512 1.262 83.032 1.526
200603 1.575 84.298 1.876
200606 1.239 85.606 1.454
200609 1.297 85.606 1.522
200612 1.359 85.142 1.603
200703 1.493 86.640 1.731
200706 1.250 87.906 1.428
200709 1.308 87.964 1.493
200712 1.467 88.616 1.663
200803 1.534 90.090 1.710
200806 1.519 92.320 1.652
200809 1.613 92.307 1.755
200812 1.697 88.697 1.921
200903 2.118 89.744 2.370
200906 1.825 91.003 2.014
200909 1.790 91.120 1.973
200912 1.892 91.111 2.085
201003 1.904 91.821 2.082
201006 1.781 91.962 1.945
201009 1.684 92.162 1.835
201012 1.934 92.474 2.100
201103 1.830 94.283 1.949
201106 1.691 95.235 1.783
201109 1.835 95.727 1.925
201112 2.398 95.213 2.529
201203 2.280 96.783 2.366
201206 2.156 96.819 2.236
201209 2.067 97.633 2.126
201212 2.276 96.871 2.360
201303 2.607 98.209 2.666
201306 2.104 98.518 2.145
201309 2.073 98.790 2.107
201312 2.387 98.326 2.438
201403 2.301 99.695 2.318
201406 2.156 100.560 2.153
201409 2.288 100.428 2.288

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.


Digital River  (FRA:RIV) 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.


Digital River Cyclically Adjusted PS Ratio Related Terms

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Digital River (FRA:RIV) Business Description

Industry
Traded in Other Exchanges
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Address
Digital River, Inc., was incorporated in Delaware in February 1994. The Company provides end-to-end e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets. It offers its clients, services that enables them to quickly and cost effectively establish an online sales channel capability and to subsequently manage and grow online sales while mitigating risks. Its services include design, development and hosting of online stores and shopping carts, store merchandising and optimization, order management, denied parties screening, export controls and management, tax compliance and management, fraud management, digital product delivery via download, physical product fulfillment, subscription management, online marketing including e-mail marketing, management of affiliate programs, paid search programs, payment processing services, website optimization, web analytics and reporting, and CD production and delivery. Its products and services allow its clients to focus on promoting and marketing their products and brands while leveraging its investments in technology and infrastructure to facilitate the purchase of products through their online websites. Shoppers could browse for products and make purchases online. The Company typically is the seller of record for transactions through its client branded stores. It also processes the buyer's payment as the merchant of record, including collection and remittance of applicable taxes. The Company's e-commerce store solutions range from simple remote control models to more comprehensive online store models. In addition to the services the Company provides, that facilitate the completion of an online transaction, it also offers services designed to increase traffic to its clients' websites and the associated online stores and to improve the sales productivity of those stores. The Company's services include paid search advertising, search engine optimization affiliate marketing, store optimization, multi-variant testing, web analytic services and e-mail optimization. All of the services are designed to help its clients acquire customers more effectively, sell to those customers more often and more efficiently, and increase the lifetime value of each customer. The Company sells its products and services to consumers through the Internet. It sells and markets its services for clients through a direct sales force located in offices in the United States, Europe and Asia Pacific. Some of the competitors of the Company are Art Technology Group, Inc., IBM Corporation, IBM Global Services, Accenture, Inc., GSI Commerce, Inc., asknet Inc., Arvato, ValueClick, Inc. and aQuantive, Inc. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the internet.