GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nestle SA (STU:NESM) » Definitions » Cyclically Adjusted PS Ratio

Nestle (STU:NESM) Cyclically Adjusted PS Ratio : 2.82 (As of May. 18, 2024)


View and export this data going back to . Start your Free Trial

What is Nestle Cyclically Adjusted PS Ratio?

As of today (2024-05-18), Nestle's current share price is €96.80. Nestle's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Dec23 was €34.32. Nestle's Cyclically Adjusted PS Ratio for today is 2.82.

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

STU:NESM' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 2.36   Med: 3.01   Max: 4.4
Current: 2.99

During the past 13 years, Nestle's highest Cyclically Adjusted PS Ratio was 4.40. The lowest was 2.36. And the median was 3.01.

STU:NESM's Cyclically Adjusted PS Ratio is ranked worse than
84.71% of 1373 companies
in the Consumer Packaged Goods industry
Industry Median: 0.81 vs STU:NESM: 2.99

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.

Nestle's adjusted revenue per share data of for the fiscal year that ended in Dec23 was €37.381. 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 €34.32 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Nestle Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Nestle'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.

Nestle Cyclically Adjusted PS Ratio Chart

Nestle Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.65 3.60 4.27 3.42 3.02

Nestle Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 4.27 - 3.42 - 3.02

Competitive Comparison of Nestle's Cyclically Adjusted PS Ratio

For the Packaged Foods subindustry, Nestle'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.


Nestle's Cyclically Adjusted PS Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle's Cyclically Adjusted PS Ratio distribution charts can be found below:

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



Nestle 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.

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=96.80/34.32
=2.82

* 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.

Nestle's Cyclically Adjusted Revenue per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Nestle's adjusted Revenue per Share data for the fiscal year that ended in Dec23 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=37.381/106.4612*106.4612
=37.381

Current CPI (Dec23) = 106.4612.

Nestle Annual Data

Revenue per Share CPI Adj_RevenuePerShare
201412 23.902 100.704 25.269
201512 26.206 99.386 28.071
201612 26.961 99.380 28.882
201712 24.850 100.213 26.399
201812 26.932 100.906 28.415
201912 28.991 101.063 30.539
202012 27.502 100.241 29.209
202112 30.115 101.776 31.501
202212 35.453 104.666 36.061
202312 37.381 106.461 37.381

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.


Nestle  (STU:NESM) 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.


Nestle Cyclically Adjusted PS Ratio Related Terms

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


Nestle (STU:NESM) Business Description

Address
Avenue Nestle 55, Vevey, CHE, CH-1800
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating more than CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina. Nestle also owns around 20% of French cosmetics firm L'Oreal. The company employs 275,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans almost 190 countries.

Nestle (STU:NESM) Headlines

No Headlines