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Sodexo (WBO:SW) Cyclically Adjusted PB Ratio : 2.84 (As of Apr. 28, 2024)


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What is Sodexo Cyclically Adjusted PB Ratio?

As of today (2024-04-28), Sodexo's current share price is €78.95. Sodexo's Cyclically Adjusted Book per Share for the fiscal year that ended in Aug23 was €27.82. Sodexo's Cyclically Adjusted PB Ratio for today is 2.84.

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

WBO:SW' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.76   Med: 3.15   Max: 4.71
Current: 2.82

During the past 13 years, Sodexo's highest Cyclically Adjusted PB Ratio was 4.71. The lowest was 1.76. And the median was 3.15.

WBO:SW's Cyclically Adjusted PB Ratio is ranked worse than
69.5% of 646 companies
in the Business Services industry
Industry Median: 1.53 vs WBO:SW: 2.82

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Sodexo's adjusted book value per share data of for the fiscal year that ended in Aug23 was €31.024. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €27.82 for the trailing ten years ended in Aug23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sodexo Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Sodexo's Cyclically Adjusted PB 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.

Sodexo Cyclically Adjusted PB Ratio Chart

Sodexo Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.29 1.91 2.15 2.15 2.58

Sodexo Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
Cyclically Adjusted PB 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 - 2.15 - 2.58 -

Competitive Comparison of Sodexo's Cyclically Adjusted PB Ratio

For the Specialty Business Services subindustry, Sodexo's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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.


Sodexo's Cyclically Adjusted PB Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Sodexo's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Sodexo's Cyclically Adjusted PB Ratio falls into.



Sodexo Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB 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 PB Ratio.

Sodexo's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=78.95/27.82
=2.84

* 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.

Sodexo's Cyclically Adjusted Book per Share for the fiscal year that ended in Aug23 is calculated as:

For example, Sodexo's adjusted Book Value per Share data for the fiscal year that ended in Aug23 was:

Adj_Book=Book Value per Share/CPI of Aug23 (Change)*Current CPI (Aug23)
=31.024/118.8900*118.8900
=31.024

Current CPI (Aug23) = 118.8900.

Sodexo Annual Data

Book Value per Share CPI Adj_Book
201408 21.003 100.300 24.896
201508 24.365 100.350 28.867
201608 24.345 100.580 28.777
201708 23.791 101.490 27.870
201808 22.543 103.780 25.825
201908 30.519 104.860 34.602
202008 18.889 105.090 21.369
202108 21.656 107.050 24.051
202208 30.105 113.380 31.568
202308 31.024 118.890 31.024

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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.


Sodexo  (WBO:SW) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Sodexo Cyclically Adjusted PB Ratio Related Terms

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


Sodexo (WBO:SW) Business Description

Industry
Address
255 Quai de la Bataille de Stalingrad, Issy-les-Moulineaux (Hauts-de-Seine), Cedex 9, Paris, FRA, 92130
Sodexo is one of the largest food service companies globally, operating in more than 80 countries with annual sales of over EUR 21 billion. Sodexo's model stems from operating on-premise catering facilities, rather than centralised industrial kitchens. While food services remains the largest business segment (58% of revenue in 2022), the company has actively pursued a strategy of diversifying its business activities into other areas, such as facilities-management services, which now represents 38% of group revenue.

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