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Softcat (LSE:SCT) Cyclically Adjusted PB Ratio : 21.82 (As of Jun. 10, 2024)


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What is Softcat Cyclically Adjusted PB Ratio?

As of today (2024-06-10), Softcat's current share price is £17.02. Softcat's Cyclically Adjusted Book per Share for the fiscal year that ended in Jul23 was £0.78. Softcat's Cyclically Adjusted PB Ratio for today is 21.82.

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

LSE:SCT' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 15.88   Med: 19.21   Max: 23.03
Current: 21.8

During the past 11 years, Softcat's highest Cyclically Adjusted PB Ratio was 23.03. The lowest was 15.88. And the median was 19.21.

LSE:SCT's Cyclically Adjusted PB Ratio is ranked worse than
95.92% of 1422 companies
in the Software industry
Industry Median: 2.5 vs LSE:SCT: 21.80

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.

Softcat's adjusted book value per share data of for the fiscal year that ended in Jul23 was £1.260. 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 £0.78 for the trailing ten years ended in Jul23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Softcat Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Softcat'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.

Softcat Cyclically Adjusted PB Ratio Chart

Softcat Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 21.61 19.21

Softcat Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 - 21.61 - 19.21 -

Competitive Comparison of Softcat's Cyclically Adjusted PB Ratio

For the Information Technology Services subindustry, Softcat'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.


Softcat's Cyclically Adjusted PB Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Softcat's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



Softcat 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.

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

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=17.02/0.78
=21.82

* 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.

Softcat's Cyclically Adjusted Book per Share for the fiscal year that ended in Jul23 is calculated as:

For example, Softcat's adjusted Book Value per Share data for the fiscal year that ended in Jul23 was:

Adj_Book=Book Value per Share/CPI of Jul23 (Change)*Current CPI (Jul23)
=1.26/129.0000*129.0000
=1.260

Current CPI (Jul23) = 129.0000.

Softcat Annual Data

Book Value per Share CPI Adj_Book
201407 0.367 99.600 0.475
201507 0.487 100.000 0.628
201607 0.443 100.900 0.566
201707 0.447 103.500 0.557
201807 0.509 105.900 0.620
201907 0.582 108.000 0.695
202007 0.708 109.200 0.836
202107 0.900 111.400 1.042
202207 1.059 121.200 1.127
202307 1.260 129.000 1.260

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.


Softcat  (LSE:SCT) 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.


Softcat Cyclically Adjusted PB Ratio Related Terms

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


Softcat (LSE:SCT) Business Description

Industry
Traded in Other Exchanges
Address
Fieldhouse Lane, Solar House, Marlow, Buckinghamshire, GBR, SL7 1LW
Softcat PLC is a information technology infrastructure and service provider. It offers software licensing, workplace technology, networking and security, and cloud and data center solutions to the corporates, public sector organizations and small to medium-sized business segment, of which small to medium-sized business segment is the major business provider to the company. The entity earns revenue from offering products like software, hardware, and services, as well as the sale of the company's own services, of which majority of the revenue is derived from offering software products.