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Primo Water (TSX:PRMW) Cyclically Adjusted PS Ratio : 1.24 (As of May. 01, 2024)


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What is Primo Water Cyclically Adjusted PS Ratio?

As of today (2024-05-01), Primo Water's current share price is C$25.96. Primo Water's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was C$20.95. Primo Water's Cyclically Adjusted PS Ratio for today is 1.24.

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

TSX:PRMW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.25   Med: 0.78   Max: 1.24
Current: 1.24

During the past years, Primo Water's highest Cyclically Adjusted PS Ratio was 1.24. The lowest was 0.25. And the median was 0.78.

TSX:PRMW's Cyclically Adjusted PS Ratio is ranked better than
55.7% of 79 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 1.45 vs TSX:PRMW: 1.24

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.

Primo Water's adjusted revenue per share data for the three months ended in Dec. 2023 was C$0.083. 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 C$20.95 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Primo Water Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Primo Water'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.

Primo Water Cyclically Adjusted PS Ratio Chart

Primo Water 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 0.77 0.89 1.02 0.97 0.95

Primo Water Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 0.97 0.96 0.77 0.87 0.95

Competitive Comparison of Primo Water's Cyclically Adjusted PS Ratio

For the Beverages - Non-Alcoholic subindustry, Primo Water'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.


Primo Water's Cyclically Adjusted PS Ratio Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Primo Water's Cyclically Adjusted PS Ratio distribution charts can be found below:

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



Primo Water 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.

Primo Water's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=25.96/20.95
=1.24

* 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.

Primo Water's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Primo Water's adjusted Revenue per Share data for the three months ended in Dec. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.083/125.4675*125.4675
=0.083

Current CPI (Dec. 2023) = 125.4675.

Primo Water Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 5.595 98.604 7.119
201406 6.312 99.473 7.961
201409 6.244 99.394 7.882
201412 6.179 98.367 7.881
201503 9.610 99.789 12.083
201506 9.626 100.500 12.017
201509 9.079 100.421 11.343
201512 -13.225 99.947 -16.602
201603 8.155 101.054 10.125
201606 7.943 102.002 9.770
201609 4.522 101.765 5.575
201612 5.021 101.449 6.210
201703 5.181 102.634 6.334
201706 5.553 103.029 6.762
201709 5.059 103.345 6.142
201712 5.234 103.345 6.354
201803 5.096 105.004 6.089
201806 5.592 105.557 6.647
201809 5.625 105.636 6.681
201812 0.166 105.399 0.198
201903 4.207 106.979 4.934
201906 4.409 107.690 5.137
201909 4.589 107.611 5.350
201912 4.301 107.769 5.007
202003 4.690 107.927 5.452
202006 3.871 108.401 4.480
202009 4.241 108.164 4.919
202012 4.027 108.559 4.654
202103 3.743 110.298 4.258
202106 3.979 111.720 4.469
202109 4.310 112.905 4.790
202112 0.168 113.774 0.185
202203 4.139 117.646 4.414
202206 4.540 120.806 4.715
202209 4.814 120.648 5.006
202212 0.092 120.964 0.095
202303 4.651 122.702 4.756
202306 4.930 124.203 4.980
202309 5.259 125.230 5.269
202312 0.083 125.468 0.083

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.


Primo Water  (TSX:PRMW) 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.


Primo Water Cyclically Adjusted PS Ratio Related Terms

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


Primo Water (TSX:PRMW) Business Description

Traded in Other Exchanges
Address
1200 Britannia Road East, Mississauga, ON, CAN, L4W 4T5
Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers in 21 countries, mostly in North America and Europe. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers. Primo generates 75% of revenue and all its profits in North America, while its European operation has yet to turn a profit.