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Safaricom (NAI:SCOM) Shiller PE Ratio : 11.07 (As of Jan. 18, 2025)


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What is Safaricom Shiller PE Ratio?

As of today (2025-01-18), Safaricom's current share price is KES18.60. Safaricom's E10 for the fiscal year that ended in Mar24 was KES1.68. Safaricom's Shiller PE Ratio for today is 11.07.

The historical rank and industry rank for Safaricom's Shiller PE Ratio or its related term are showing as below:

NAI:SCOM' s Shiller PE Ratio Range Over the Past 10 Years
Min: 7.52   Med: 30.42   Max: 42.14
Current: 10.75

During the past 13 years, Safaricom's highest Shiller PE Ratio was 42.14. The lowest was 7.52. And the median was 30.42.

NAI:SCOM's Shiller PE Ratio is ranked better than
69.95% of 203 companies
in the Telecommunication Services industry
Industry Median: 15.85 vs NAI:SCOM: 10.75

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Safaricom's adjusted earnings per share data of for the fiscal year that ended in Mar24 was KES1.600. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is KES1.68 for the trailing ten years ended in Mar24.

Shiller PE for Stocks: The True Measure of Stock Valuation


Safaricom Shiller PE Ratio Historical Data

The historical data trend for Safaricom's Shiller PE 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.

Safaricom Shiller PE Ratio Chart

Safaricom Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.75 31.61 24.85 11.71 10.54

Safaricom Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Shiller PE 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 - 11.71 - 10.54 -

Competitive Comparison of Safaricom's Shiller PE Ratio

For the Telecom Services subindustry, Safaricom's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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.


Safaricom's Shiller PE Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Safaricom's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Safaricom's Shiller PE Ratio falls into.



Safaricom Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Safaricom's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=18.60/1.68
=11.07

* 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.

Safaricom's E10 for the fiscal year that ended in Mar24 is calculated as:

For example, Safaricom's adjusted earnings per share data for the fiscal year that ended in Mar24 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar24 (Change)*Current CPI (Mar24)
=1.6/131.7762*131.7762
=1.600

Current CPI (Mar24) = 131.7762.

Safaricom Annual Data

Earnings per Share (Diluted) CPI Adj_EPS
201503 0.800 99.621 1.058
201603 0.950 100.470 1.246
201703 1.210 102.862 1.550
201803 1.380 105.290 1.727
201903 1.560 107.251 1.917
202003 1.840 108.902 2.226
202103 1.710 111.754 2.016
202203 1.700 121.301 1.847
202303 1.600 127.348 1.656
202403 1.600 131.776 1.600

Add all the adjusted EPS together and divide 10 will get our E10.

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.


Safaricom  (NAI:SCOM) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Safaricom Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Safaricom's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Safaricom Business Description

Traded in Other Exchanges
N/A
Address
Safaricom House, Waiyaki Way, P.O. Box 66827, Westlands, Nairobi, KEN, 00800
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.

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