GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Charles Schwab Corp (WBO:SCHW) » Definitions » Cyclically Adjusted PS Ratio

Charles Schwab (WBO:SCHW) Cyclically Adjusted PS Ratio : 8.58 (As of Apr. 30, 2024)


View and export this data going back to 2019. Start your Free Trial

What is Charles Schwab Cyclically Adjusted PS Ratio?

As of today (2024-04-30), Charles Schwab's current share price is €69.96. Charles Schwab's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was €8.15. Charles Schwab's Cyclically Adjusted PS Ratio for today is 8.58.

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

WBO:SCHW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 4.55   Med: 7.95   Max: 13.61
Current: 8.44

During the past years, Charles Schwab's highest Cyclically Adjusted PS Ratio was 13.61. The lowest was 4.55. And the median was 7.95.

WBO:SCHW's Cyclically Adjusted PS Ratio is ranked worse than
77.28% of 581 companies
in the Capital Markets industry
Industry Median: 3.03 vs WBO:SCHW: 8.44

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.

Charles Schwab's adjusted revenue per share data for the three months ended in Dec. 2023 was €2.237. 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 €8.15 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Charles Schwab Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Charles Schwab'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.

Charles Schwab Cyclically Adjusted PS Ratio Chart

Charles Schwab 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 8.48 8.74 11.98 10.30 7.79

Charles Schwab 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 6.26 6.61 6.26 7.79 -

Competitive Comparison of Charles Schwab's Cyclically Adjusted PS Ratio

For the Capital Markets subindustry, Charles Schwab'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.


Charles Schwab's Cyclically Adjusted PS Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Charles Schwab's Cyclically Adjusted PS Ratio distribution charts can be found below:

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



Charles Schwab 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.

Charles Schwab's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=69.96/8.15
=8.58

* 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.

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

For example, Charles Schwab'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)
=2.237/129.4194*129.4194
=2.237

Current CPI (Dec. 2023) = 129.4194.

Charles Schwab Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 0.816 99.695 1.059
201406 0.825 100.560 1.062
201409 0.914 100.428 1.178
201412 0.954 99.070 1.246
201503 1.063 99.621 1.381
201506 1.051 100.684 1.351
201509 1.068 100.392 1.377
201512 1.167 99.792 1.513
201603 1.192 100.470 1.535
201606 1.219 101.688 1.551
201609 1.275 101.861 1.620
201612 1.399 101.863 1.777
201703 1.440 102.862 1.812
201706 1.403 103.349 1.757
201709 1.343 104.136 1.669
201712 1.397 104.011 1.738
201803 1.428 105.290 1.755
201806 1.560 106.317 1.899
201809 1.620 106.507 1.969
201812 1.731 105.998 2.113
201903 1.793 107.251 2.164
201906 1.775 108.070 2.126
201909 1.882 108.329 2.248
201912 1.814 108.420 2.165
202003 1.830 108.902 2.175
202006 1.681 108.767 2.000
202009 1.606 109.815 1.893
202012 1.848 109.897 2.176
202103 2.093 111.754 2.424
202106 1.982 114.631 2.238
202109 2.047 115.734 2.289
202112 2.189 117.630 2.408
202203 2.227 121.301 2.376
202206 2.530 125.017 2.619
202209 2.931 125.227 3.029
202212 2.771 125.222 2.864
202303 2.594 127.348 2.636
202306 2.355 128.729 2.368
202309 2.362 129.860 2.354
202312 2.237 129.419 2.237

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.


Charles Schwab  (WBO:SCHW) 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.


Charles Schwab Cyclically Adjusted PS Ratio Related Terms

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


Charles Schwab (WBO:SCHW) Business Description

Address
3000 Schwab Way, Westlake, TX, USA, 76262
Charles Schwab operates in brokerage, wealth management, banking, and asset-management businesses. The company runs a large network of brick-and-mortar brokerage branch offices, a well-established online investing website, and has mobile trading capabilities. It also operates a bank and a proprietary asset management business and offers services to independent investment advisors. The company is among the largest firms in the investment business, with over $7 trillion of client assets at the end of December 2022. Nearly all of its revenue is from the United States.

Charles Schwab (WBO:SCHW) Headlines