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Fairfax Financial Holdings (FRA:FFX) Cyclically Adjusted Revenue per Share : €685.99 (As of Mar. 2024)


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What is Fairfax Financial Holdings Cyclically Adjusted Revenue per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Revenue per Share and 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.

Fairfax Financial Holdings's adjusted revenue per share for the three months ended in Mar. 2024 was €241.672. Add all the adjusted revenue per share for the past 10 years together and divide the count will get our Cyclically Adjusted Revenue per Share, which is €685.99 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Fairfax Financial Holdings's average Cyclically Adjusted Revenue Growth Rate was 13.20% per year. During the past 3 years, the average Cyclically Adjusted Revenue Growth Rate was 15.70% per year. During the past 5 years, the average Cyclically Adjusted Revenue Growth Rate was 14.10% per year. During the past 10 years, the average Cyclically Adjusted Revenue Growth Rate was 8.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Revenue Growth Rate using Cyclically Adjusted Revenue per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Revenue Growth Rate of Fairfax Financial Holdings was 15.70% per year. The lowest was -4.60% per year. And the median was 5.10% per year.

As of today (2024-05-10), Fairfax Financial Holdings's current stock price is €1050.00. Fairfax Financial Holdings's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €685.99. Fairfax Financial Holdings's Cyclically Adjusted PS Ratio of today is 1.53.

During the past 13 years, the highest Cyclically Adjusted PS Ratio of Fairfax Financial Holdings was 1.78. The lowest was 0.58. And the median was 1.17.


Fairfax Financial Holdings Cyclically Adjusted Revenue per Share Historical Data

The historical data trend for Fairfax Financial Holdings's Cyclically Adjusted Revenue per Share 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.

Fairfax Financial Holdings Cyclically Adjusted Revenue per Share Chart

Fairfax Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Revenue per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 388.52 394.34 510.73 579.74 665.77

Fairfax Financial Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Revenue per Share 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 600.79 621.34 670.25 665.77 685.99

Competitive Comparison of Fairfax Financial Holdings's Cyclically Adjusted Revenue per Share

For the Insurance - Property & Casualty subindustry, Fairfax Financial Holdings'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.


Fairfax Financial Holdings's Cyclically Adjusted PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's Cyclically Adjusted PS Ratio distribution charts can be found below:

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



Fairfax Financial Holdings Cyclically Adjusted Revenue per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Revenue per Share and 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.

What is Cyclically Adjusted Revenue per Share? How do we calculate Cyclically Adjusted Revenue per Share?

Cyclically Adjusted Revenue per Share is the average of the inflation adjusted Revenue per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Revenue per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the revenue per share from 2001 through 2010.

We adjusted the 2001 revenue per share data with the total inflation from 2001 through 2010 to the equivalent revenue in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's revenue is $1 a share in 2001, then the 2001's equivalent revenue in 2010 is $1.4 a share. If Wal-Mart's revenue is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 revenue in 2010 is $1.35. So on and so forth, you get the equivalent revenue per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

For example, Fairfax Financial Holdings'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)
=241.672/125.4675*125.4675
=241.672

Current CPI (Mar. 2024) = 125.4675.

Fairfax Financial Holdings Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 80.718 99.473 101.811
201409 92.132 99.394 116.300
201412 76.626 98.367 97.737
201503 99.106 99.789 124.608
201506 56.681 100.500 70.762
201509 115.985 100.421 144.913
201512 98.319 99.947 123.423
201603 86.755 101.054 107.715
201606 108.284 102.002 133.195
201609 92.177 101.765 113.647
201612 74.013 101.449 91.536
201703 106.911 102.634 130.696
201706 120.319 103.029 146.523
201709 143.598 103.345 174.338
201712 95.797 103.345 116.304
201803 113.909 105.004 136.108
201806 125.386 105.557 149.037
201809 131.752 105.636 156.486
201812 123.638 105.399 147.179
201903 173.588 106.979 203.588
201906 162.965 107.690 189.867
201909 154.598 107.611 180.251
201912 185.665 107.769 216.155
202003 109.641 107.927 127.460
202006 162.988 108.401 188.648
202009 139.328 108.164 161.617
202012 172.973 108.559 199.914
202103 177.376 110.298 201.772
202106 199.587 111.720 224.147
202109 188.851 112.905 209.864
202112 238.187 113.774 262.667
202203 162.446 117.646 173.247
202206 153.351 120.806 159.268
202209 191.600 120.648 199.254
202212 249.489 120.964 258.778
202303 232.943 122.702 238.193
202306 199.042 124.203 201.068
202309 233.704 125.230 234.146
202312 295.640 125.468 295.640
202403 241.672 125.468 241.672

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


Fairfax Financial Holdings  (FRA:FFX) Cyclically Adjusted Revenue per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Revenue per Share may underestimate the company's revenue. Cyclically Adjusted PS Ratio can seem to be too high even the actual PS Ratio is low.

For the Cyclically Adjusted PS Ratio, the revenue per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/S calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PS Ratio is also called CAPS Ratio.

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.

Fairfax Financial Holdings's Cyclically Adjusted PS Ratio of today is calculated as

Cyclically Adjusted PS Ratio=Share Price/Cyclically Adjusted Revenue per Share
=1050.00/685.99
=1.53

* 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.

During the past 13 years, the highest Cyclically Adjusted PS Ratio of Fairfax Financial Holdings was 1.78. The lowest was 0.58. And the median was 1.17.


Be Aware

Cyclically Adjusted PS Ratio works better for cyclical companies. It gives you a better idea on the company's real revenue value.


Fairfax Financial Holdings Cyclically Adjusted Revenue per Share Related Terms

Thank you for viewing the detailed overview of Fairfax Financial Holdings's Cyclically Adjusted Revenue per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Fairfax Financial Holdings (FRA:FFX) Business Description

Address
95 Wellington Street West, Suite 800, Toronto, ON, CAN, M5J 2N7
Fairfax provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chairman and CEO, since its formation in 1985.

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