Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Prosus NV's Sloan Ratio for the quarter that ended in Mar. 2026 was 4.09%.
As of Mar. 2026, Prosus NV has a Sloan Ratio of 4.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Prosus NV (OTCPK:PROSF) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Prosus NV has a Sloan Ratio of 4.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Prosus NV Sloan Ratio % Related Terms
Prosus NV Sloan Ratio % Historical Data
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The historical data trend for Prosus NV's Sloan 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.
PROSF vs AMZN, BABA, PDD: Sloan Ratio % Comparison
For the Internet Retail subindustry, Prosus NV's Sloan Ratio %, along with its competitors' market caps and Sloan 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.
Prosus NV Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Prosus NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Prosus NV's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Prosus NV's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Prosus NV's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 5632 (Sep. 2025 ) + 6006 (Mar. 2026 ) = $11,638 Mil.
Prosus NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1311 (Sep. 2025 ) + 298 (Mar. 2026 ) = $1,609 Mil.
Prosus NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 14107 (Sep. 2025 ) + -7313 (Mar. 2026 ) = $6,794 Mil.
* 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.
Prosus NV (PROSF) has a Sloan Ratio % of 4.09% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Prosus NV and its competitors.
Is Prosus NV's Sloan Ratio % too high?
Prosus NV's current Sloan Ratio % is 4.09%. Overall, Prosus NV has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Prosus NV's Sloan Ratio % compare to AMZN and BABA?
Prosus NV's Sloan Ratio % of 4.09% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Prosus NV and its competitors. Prosus NV's current Sloan Ratio % is 4.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosus NV stock overvalued right now?
Based on GuruFocus' analysis, Prosus NV (PROSF) is currently considered Possible Value Trap. The stock's GF Value™ is $86.03, compared to a current price of $45.00 — trading 47.7% below its estimated fair value. The current Sloan Ratio % is 4.09%. Prosus NV's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Prosus NV (PROSF), the current Sloan Ratio % is 4.09% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Prosus NV (PROSF) Overvalued in 2026?
Based on GuruFocus' analysis, Prosus NV stock appears to be undervalued.
The current stock price of $45.00 is trading 47.7% below its estimated GF Value™ of $86.03.
GuruFocus considers Prosus NV to be Possible Value Trap.
Key valuation signals for PROSF:
Sloan Ratio %: 4.09%
GF Value™: $86.03 vs. price of $45.00 (47.7% below fair value)
No single metric tells the full story. See the PROSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prosus is a consumer internet group with listed and unlisted platforms across 100 countries. Around 80% of Prosus' net asset value is derived from its Tencent holdings, the world's largest game publisher and operator of WeChat, China's super app with 1.3 billion users. Prosus has approximately a 23% stake in Tencent. The rest of the group's businesses and investments are organized into classifieds, food delivery, payments and fintech, and edtech. This includes ownership of iFood, Brazil's largest food delivery app, and a 25% stake in Swiggy, the second-largest delivery platform in India.In 2019, Prosus was spun out of South Africa-based parent company Naspers Ltd and listed on the Euronext exchange. Naspers holds approximately 75% of Prosus' shares.
76GF Score
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