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Fairfax Financial Holdings (Fairfax Financial Holdings) Cyclically Adjusted PS Ratio : 1.48 (As of Apr. 27, 2024)


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What is Fairfax Financial Holdings Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Fairfax Financial Holdings's current share price is $1084.74. Fairfax Financial Holdings's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $733.97. Fairfax Financial Holdings's Cyclically Adjusted PS Ratio for today is 1.48.

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

FRFHF' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.58   Med: 1.17   Max: 1.78
Current: 1.53

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

FRFHF's Cyclically Adjusted PS Ratio is ranked worse than
70.22% of 403 companies
in the Insurance industry
Industry Median: 0.99 vs FRFHF: 1.53

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 adjusted revenue per share data for the three months ended in Dec. 2023 was $322.399. 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 $733.97 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Fairfax Financial Holdings Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Fairfax Financial Holdings'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.

Fairfax Financial Holdings Cyclically Adjusted PS Ratio Chart

Fairfax Financial Holdings 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 1.07 0.69 0.85 0.95 1.25

Fairfax Financial Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.95 1.03 1.09 1.18 1.25

Competitive Comparison of Fairfax Financial Holdings's Cyclically Adjusted PS Ratio

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 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.

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=1084.74/733.97
=1.48

* 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.

Fairfax Financial Holdings's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Fairfax Financial Holdings's adjusted Revenue per Share data for the three months ended in Dec. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=322.399/125.4675*125.4675
=322.399

Current CPI (Dec. 2023) = 125.4675.

Fairfax Financial Holdings Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 131.678 98.604 167.552
201406 109.672 99.473 138.331
201409 118.727 99.394 149.872
201412 94.483 98.367 120.513
201503 107.258 99.789 134.858
201506 63.616 100.500 79.420
201509 130.174 100.421 162.641
201512 107.102 99.947 134.449
201603 96.609 101.054 119.949
201606 121.668 102.002 149.658
201609 103.453 101.765 127.549
201612 78.072 101.449 96.556
201703 114.343 102.634 139.782
201706 135.190 103.029 164.633
201709 171.153 103.345 207.791
201712 113.369 103.345 137.638
201803 140.455 105.004 167.827
201806 146.478 105.557 174.107
201809 153.736 105.636 182.598
201812 140.658 105.399 167.440
201903 196.145 106.979 230.043
201906 184.141 107.690 214.538
201909 170.262 107.611 198.514
201912 206.294 107.769 240.172
202003 121.151 107.927 140.840
202006 183.545 108.401 212.441
202009 164.109 108.164 190.362
202012 210.430 108.559 243.204
202103 211.162 110.298 240.204
202106 240.467 111.720 270.058
202109 222.178 112.905 246.899
202112 269.138 113.774 296.800
202203 178.905 117.646 190.800
202206 162.104 120.806 168.359
202209 189.703 120.648 197.281
202212 264.289 120.964 274.129
202303 247.661 122.702 253.243
202306 215.647 124.203 217.842
202309 249.417 125.230 249.889
202312 322.399 125.468 322.399

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.


Fairfax Financial Holdings  (OTCPK:FRFHF) 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.


Fairfax Financial Holdings Cyclically Adjusted PS Ratio Related Terms

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


Fairfax Financial Holdings (Fairfax Financial Holdings) 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.