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ARMOUR Residential REIT (FRA:2AR) Cyclically Adjusted PS Ratio : (As of Jun. 09, 2024)


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What is ARMOUR Residential REIT Cyclically Adjusted PS Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


ARMOUR Residential REIT Cyclically Adjusted PS Ratio Historical Data

The historical data trend for ARMOUR Residential REIT's Cyclically Adjusted PS 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.

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ARMOUR Residential REIT Cyclically Adjusted PS Ratio Chart

ARMOUR Residential REIT Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.97 110.80 - - -

ARMOUR Residential REIT Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS 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 - - - - -

Competitive Comparison of ARMOUR Residential REIT's Cyclically Adjusted PS Ratio

For the REIT - Mortgage subindustry, ARMOUR Residential REIT's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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.


ARMOUR Residential REIT's Cyclically Adjusted PS Ratio Distribution in the REITs Industry

For the REITs industry and Real Estate sector, ARMOUR Residential REIT's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where ARMOUR Residential REIT's Cyclically Adjusted PS Ratio falls into.



ARMOUR Residential REIT Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS 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 PS Ratio.

ARMOUR Residential REIT's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, ARMOUR Residential REIT's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.472/131.7762*131.7762
=0.472

Current CPI (Mar. 2024) = 131.7762.

ARMOUR Residential REIT Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 -5.581 100.560 -7.314
201409 4.859 100.428 6.376
201412 -12.795 99.070 -17.019
201503 -12.902 99.621 -17.066
201506 20.281 100.684 26.544
201509 -22.402 100.392 -29.405
201512 13.808 99.792 18.234
201603 -34.264 100.470 -44.940
201606 0.921 101.688 1.194
201609 9.913 101.861 12.824
201612 11.735 101.863 15.181
201703 3.895 102.862 4.990
201706 0.282 103.349 0.360
201709 3.759 104.136 4.757
201712 5.290 104.011 6.702
201803 4.419 105.290 5.531
201806 1.956 106.317 2.424
201809 5.288 106.507 6.543
201812 -17.993 105.998 -22.369
201903 -9.292 107.251 -11.417
201906 -12.093 108.070 -14.746
201909 -3.782 108.329 -4.601
201912 8.268 108.420 10.049
202003 -16.910 108.902 -20.462
202006 3.589 108.767 4.348
202009 4.210 109.815 5.052
202012 5.136 109.897 6.159
202103 4.511 111.754 5.319
202106 -3.724 114.631 -4.281
202109 1.751 115.734 1.994
202112 -0.938 117.630 -1.051
202203 -3.083 121.301 -3.349
202206 -2.553 125.017 -2.691
202209 -5.699 125.227 -5.997
202212 1.304 125.222 1.372
202303 -0.769 127.348 -0.796
202306 1.033 128.729 1.057
202309 -3.583 129.860 -3.636
202312 1.893 129.419 1.927
202403 0.472 131.776 0.472

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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.


ARMOUR Residential REIT  (FRA:2AR) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


ARMOUR Residential REIT Cyclically Adjusted PS Ratio Related Terms

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ARMOUR Residential REIT (FRA:2AR) Business Description

Traded in Other Exchanges
Address
3001 Ocean Drive, Suite 201, Vero Beach, FL, USA, 32963
ARMOUR Residential REIT Inc is a real estate investment trust that invests in residential mortgage-backed securities or RMBS. These are issued or guaranteed by U.S.-government-sponsored enterprises, such as Fannie Mae, Freddie Mac, or Ginnie Mae. The company's investment portfolio is composed of mortgage-backed securities, adjustable-rate mortgage securities, and multifamily mortgage-backed securities. In terms of total fair value, most Armour's investments are long-term, fixed-rate agency RMBS. Multifamily RMBS also represents a substantial amount. Fannie Mae guarantees most of the company's holdings. Armour derives substantially all its revenue as interest income from its investments.

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