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RWE AG (RWE AG) Cyclically Adjusted PB Ratio : 1.49 (As of May. 17, 2024)


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What is RWE AG Cyclically Adjusted PB Ratio?

As of today (2024-05-17), RWE AG's current share price is $37.78. RWE AG's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was $25.33. RWE AG's Cyclically Adjusted PB Ratio for today is 1.49.

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

RWEOY' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.72   Med: 1.54   Max: 2.13
Current: 1.51

During the past years, RWE AG's highest Cyclically Adjusted PB Ratio was 2.13. The lowest was 0.72. And the median was 1.54.

RWEOY's Cyclically Adjusted PB Ratio is ranked worse than
53.47% of 447 companies
in the Utilities - Regulated industry
Industry Median: 1.45 vs RWEOY: 1.51

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.

RWE AG's adjusted book value per share data for the three months ended in Mar. 2024 was $46.977. 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 $25.33 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


RWE AG Cyclically Adjusted PB Ratio Historical Data

The historical data trend for RWE AG'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.

RWE AG Cyclically Adjusted PB Ratio Chart

RWE AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.35 1.75 1.79 2.05 1.82

RWE AG Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 1.88 1.85 1.58 1.82 1.34

Competitive Comparison of RWE AG's Cyclically Adjusted PB Ratio

For the Utilities - Diversified subindustry, RWE AG'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.


RWE AG's Cyclically Adjusted PB Ratio Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, RWE AG's Cyclically Adjusted PB Ratio distribution charts can be found below:

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



RWE AG 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.

RWE AG's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=37.78/25.33
=1.49

* 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.

RWE AG's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, RWE AG's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=46.977/125.0381*125.0381
=46.977

Current CPI (Mar. 2024) = 125.0381.

RWE AG Quarterly Data

Book Value per Share CPI Adj_Book
201406 22.424 99.543 28.167
201409 20.162 99.823 25.255
201412 20.244 99.543 25.429
201503 20.869 99.717 26.168
201506 22.264 100.417 27.723
201509 18.514 100.417 23.053
201512 12.044 99.717 15.102
201603 12.544 100.017 15.682
201606 11.310 100.717 14.041
201609 9.189 101.017 11.374
201612 6.342 101.217 7.835
201703 8.046 101.417 9.920
201706 12.186 102.117 14.921
201709 13.898 102.717 16.918
201712 15.825 102.617 19.283
201803 18.435 102.917 22.397
201806 15.763 104.017 18.949
201809 21.005 104.718 25.081
201812 17.907 104.217 21.484
201903 13.705 104.217 16.443
201906 13.958 105.718 16.509
201909 27.903 106.018 32.909
201912 30.661 105.818 36.230
202003 30.100 105.718 35.601
202006 29.443 106.618 34.530
202009 31.104 105.818 36.754
202012 30.911 105.518 36.629
202103 34.090 107.518 39.645
202106 34.519 108.486 39.786
202109 25.811 109.435 29.491
202112 25.489 110.384 28.873
202203 15.529 113.968 17.037
202206 12.149 115.760 13.123
202209 -2.180 118.818 -2.294
202212 43.199 119.345 45.260
202303 46.185 122.402 47.180
202306 47.267 123.140 47.995
202309 48.772 124.195 49.103
202312 46.282 123.773 46.755
202403 46.977 125.038 46.977

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.


RWE AG  (OTCPK:RWEOY) 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.


RWE AG Cyclically Adjusted PB Ratio Related Terms

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


RWE AG (RWE AG) Business Description

Industry
Address
RWE Platz 1, Essen, NW, DEU, 45141
Since the deal with E.On, RWE is refocused on power generation, mostly in Europe. It owns 38 gigawatts of power generation capacity: 28% from lignite and hard coal plants, 37% from gas plants, 40% from renewables including pumped storage and batteries. Besides Germany, RWE's power plants are chiefly located in the United Kingdom, the Netherlands, Turkey, and the United States for many onshore wind farms.