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Solution Financial (TSX:SFI) Cyclically Adjusted PS Ratio : 1.40 (As of Jun. 09, 2024)


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What is Solution Financial Cyclically Adjusted PS Ratio?

As of today (2024-06-09), Solution Financial's current share price is C$0.28. Solution Financial's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 was C$0.20. Solution Financial's Cyclically Adjusted PS Ratio for today is 1.40.

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

TSX:SFI' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.15   Med: 2.63   Max: 5
Current: 1.41

During the past years, Solution Financial's highest Cyclically Adjusted PS Ratio was 5.00. The lowest was 1.15. And the median was 2.63.

TSX:SFI's Cyclically Adjusted PS Ratio is ranked worse than
69.45% of 1005 companies
in the Vehicles & Parts industry
Industry Median: 0.66 vs TSX:SFI: 1.41

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Solution Financial's adjusted revenue per share data for the three months ended in Jan. 2024 was C$0.036. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is C$0.20 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Solution Financial Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Solution Financial'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.

* Premium members only.

Solution Financial Cyclically Adjusted PS Ratio Chart

Solution Financial Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.18 3.30 2.62 1.59 1.24

Solution Financial Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 1.60 1.59 1.53 1.24 1.51

Competitive Comparison of Solution Financial's Cyclically Adjusted PS Ratio

For the Auto & Truck Dealerships subindustry, Solution Financial'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.


Solution Financial's Cyclically Adjusted PS Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Solution Financial's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Solution Financial's Cyclically Adjusted PS Ratio falls into.



Solution Financial 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.

Solution Financial's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=0.28/0.2
=1.40

* 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.

Solution Financial's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Solution Financial's adjusted Revenue per Share data for the three months ended in Jan. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.036/125.0724*125.0724
=0.036

Current CPI (Jan. 2024) = 125.0724.

Solution Financial Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 0.000 98.604 0.000
201406 0.000 99.473 0.000
201409 0.000 99.394 0.000
201412 0.000 98.367 0.000
201503 0.000 99.789 0.000
201506 0.000 100.500 0.000
201509 0.000 100.421 0.000
201512 0.000 99.947 0.000
201603 0.000 101.054 0.000
201606 0.000 102.002 0.000
201609 0.000 101.765 0.000
201612 0.000 101.449 0.000
201703 0.000 102.634 0.000
201706 0.000 103.029 0.000
201709 0.000 103.345 0.000
201712 0.000 103.345 0.000
201803 0.000 105.004 0.000
201807 0.020 106.110 0.024
201810 0.042 105.952 0.050
201901 0.027 105.557 0.032
201904 0.031 107.453 0.036
201907 0.031 108.243 0.036
201910 0.031 107.927 0.036
202001 0.037 108.085 0.043
202004 0.035 107.216 0.041
202007 0.050 108.401 0.058
202010 0.056 108.638 0.064
202101 0.046 109.192 0.053
202104 0.069 110.851 0.078
202107 0.072 112.431 0.080
202110 0.055 113.695 0.061
202201 0.059 114.801 0.064
202204 0.063 118.357 0.067
202207 0.038 120.964 0.039
202210 0.069 121.517 0.071
202301 0.058 121.596 0.060
202304 0.040 123.571 0.040
202307 0.035 124.914 0.035
202310 0.043 125.310 0.043
202401 0.036 125.072 0.036

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.


Solution Financial  (TSX:SFI) 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.


Solution Financial Cyclically Adjusted PS Ratio Related Terms

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


Solution Financial (TSX:SFI) Business Description

Traded in Other Exchanges
Address
Unit 137 - 8680 Cambie Road, Richmond, BC, CAN, V6X 4K1
Solution Financial Inc is engaged in retail sales, leases, and financing for high-end automotive vehicles, ultra-luxury vehicles, boats, and commercial equipment. The firm generates the majority of its revenue through the sales and leases of vehicles.
Executives
John Randall Smyth Director

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