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Safaricom (NAI:SCOM) Cyclically Adjusted PB Ratio : 4.41 (As of Jun. 08, 2024)


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What is Safaricom Cyclically Adjusted PB Ratio?

As of today (2024-06-08), Safaricom's current share price is KES18.35. Safaricom's Cyclically Adjusted Book per Share for the fiscal year that ended in Mar24 was KES4.16. Safaricom's Cyclically Adjusted PB Ratio for today is 4.41.

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

NAI:SCOM' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.09   Med: 10.56   Max: 14.77
Current: 4.3

During the past 13 years, Safaricom's highest Cyclically Adjusted PB Ratio was 14.77. The lowest was 3.09. And the median was 10.56.

NAI:SCOM's Cyclically Adjusted PB Ratio is ranked worse than
85.71% of 287 companies
in the Telecommunication Services industry
Industry Median: 1.49 vs NAI:SCOM: 4.30

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.

Safaricom's adjusted book value per share data of for the fiscal year that ended in Mar24 was KES5.649. 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 KES4.16 for the trailing ten years ended in Mar24.

Shiller PE for Stocks: The True Measure of Stock Valuation


Safaricom Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Safaricom'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.

Safaricom Cyclically Adjusted PB Ratio Chart

Safaricom Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.45 12.03 10.07 4.80 4.26

Safaricom Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 10.07 - 4.80 - 4.26

Competitive Comparison of Safaricom's Cyclically Adjusted PB Ratio

For the Telecom Services subindustry, Safaricom'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.


Safaricom's Cyclically Adjusted PB Ratio Distribution in the Telecommunication Services Industry

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

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



Safaricom 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.

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

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=18.35/4.16
=4.41

* 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 Cyclically Adjusted Book per Share for the fiscal year that ended in Mar24 is calculated as:

For example, Safaricom's adjusted Book Value per Share data for the fiscal year that ended in Mar24 was:

Adj_Book=Book Value per Share/CPI of Mar24 (Change)*Current CPI (Mar24)
=5.649/131.7762*131.7762
=5.649

Current CPI (Mar24) = 131.7762.

Safaricom Annual Data

Book Value per Share CPI Adj_Book
201503 2.603 99.621 3.443
201603 2.914 100.470 3.822
201703 2.683 102.862 3.437
201803 3.093 105.290 3.871
201903 3.603 107.251 4.427
202003 3.571 108.902 4.321
202103 3.435 111.754 4.050
202203 3.481 121.301 3.782
202303 4.681 127.348 4.844
202403 5.649 131.776 5.649

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.


Safaricom  (NAI:SCOM) 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.


Safaricom Cyclically Adjusted PB Ratio Related Terms

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


Safaricom (NAI:SCOM) 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.

Safaricom (NAI:SCOM) Headlines