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A.O. Smith (LTS:0L7A) Cyclically Adjusted PS Ratio : 2.74 (As of Jun. 02, 2025)


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What is A.O. Smith Cyclically Adjusted PS Ratio?

As of today (2025-06-02), A.O. Smith's current share price is $64.354. A.O. Smith's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2025 was $23.50. A.O. Smith's Cyclically Adjusted PS Ratio for today is 2.74.

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

LTS:0L7A' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 2.39   Med: 3.46   Max: 4.88
Current: 2.72

During the past years, A.O. Smith's highest Cyclically Adjusted PS Ratio was 4.88. The lowest was 2.39. And the median was 3.46.

LTS:0L7A's Cyclically Adjusted PS Ratio is ranked worse than
65.15% of 2046 companies
in the Industrial Products industry
Industry Median: 1.73 vs LTS:0L7A: 2.72

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.

A.O. Smith's adjusted revenue per share data for the three months ended in Mar. 2025 was $6.675. 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 $23.50 for the trailing ten years ended in Mar. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


A.O. Smith Cyclically Adjusted PS Ratio Historical Data

The historical data trend for A.O. Smith'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.

A.O. Smith Cyclically Adjusted PS Ratio Chart

A.O. Smith Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.53 4.85 2.87 3.81 2.95

A.O. Smith Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 4.01 3.60 3.91 2.95 2.76

Competitive Comparison of A.O. Smith's Cyclically Adjusted PS Ratio

For the Specialty Industrial Machinery subindustry, A.O. Smith'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.


A.O. Smith's Cyclically Adjusted PS Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, A.O. Smith's Cyclically Adjusted PS Ratio distribution charts can be found below:

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


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A.O. Smith 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.

A.O. Smith's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=64.354/23.50
=2.74

* 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.

A.O. Smith's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, A.O. Smith's adjusted Revenue per Share data for the three months ended in Mar. 2025 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=6.675/134.9266*134.9266
=6.675

Current CPI (Mar. 2025) = 134.9266.

A.O. Smith Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201506 3.638 100.684 4.875
201509 3.497 100.392 4.700
201512 3.606 99.792 4.876
201603 3.582 100.470 4.810
201606 3.768 101.688 5.000
201609 3.874 101.861 5.132
201612 3.968 101.863 5.256
201703 4.218 102.862 5.533
201706 4.221 103.349 5.511
201709 4.301 104.136 5.573
201712 4.423 104.011 5.738
201803 4.546 105.290 5.826
201806 4.824 106.317 6.122
201809 4.382 106.507 5.551
201812 4.762 105.998 6.062
201903 4.425 107.251 5.567
201906 4.554 108.070 5.686
201909 4.399 108.329 5.479
201912 4.574 108.420 5.692
202003 3.910 108.902 4.844
202006 4.094 108.767 5.079
202009 4.677 109.815 5.747
202012 5.124 109.897 6.291
202103 4.724 111.754 5.704
202106 5.316 114.631 6.257
202109 5.694 115.734 6.638
202112 6.216 117.630 7.130
202203 6.176 121.301 6.870
202206 6.167 125.017 6.656
202209 5.637 125.227 6.074
202212 6.113 125.222 6.587
202303 6.362 127.348 6.741
202306 6.340 128.729 6.645
202309 6.200 129.860 6.442
202312 6.613 129.419 6.894
202403 6.600 131.776 6.758
202406 6.940 132.554 7.064
202409 6.153 133.029 6.241
202412 6.260 133.157 6.343
202503 6.675 134.927 6.675

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.


A.O. Smith  (LTS:0L7A) 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.


A.O. Smith Cyclically Adjusted PS Ratio Related Terms

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


A.O. Smith Business Description

Traded in Other Exchanges
Address
11270 West Park Place, Suite 170, Milwaukee, WI, USA, 53224
A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

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