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Apple Inc (NAS:AAPL)
Shiller P/E Ratio
24.50 (As of Today)

As of today, Apple Inc's current share price is $105.22. Apple Inc's E10 for the quarter that ended in Jun. 2014 was $4.30. Apple Inc's Shiller P/E Ratio for today is 24.50.

AAPL' s 10-Year Shiller P/E Ratio Range
Min: 17.27   Max: 135.86
Current: 24.5

17.27
135.86

During the past 13 years, Apple Inc's highest Shiller P/E Ratio was 135.86. The lowest was 17.27. And the median was 44.10.

AAPL's Shiller P/E Ratiois ranked higher than
85% of the 2720 Companies
in the Global Computer Systems industry.

( Industry Median: 9999.00 vs. AAPL: 24.50 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Apple Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was $1.273. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $4.30 for the trailing six years ended in Jun. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Apple Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=105.22/4.30
=24.47

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Apple Inc's E10 for the fiscal year that ended in Sep13 is calculated as:

For example, Apple Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=1.28/238.343*237.056
=1.273

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 237.056.

Apple Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.3311.2391.9731.4411.0671.1802.0711.6601.2801.420
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343237.454
Adj_EPS 1.3751.2692.0371.4681.0831.1952.1071.6651.2731.418
200912201003201006201009201012201103201106201109201112201203
per share eps 0.5240.4760.5010.6630.9190.9141.1131.0071.9811.757
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.5750.5180.5450.7200.9940.9701.1691.0522.0811.816
200812200903200906200909
per share eps 0.2540.1900.1930.656
CPI 210.228212.709215.693215.969
Adj_EPS 0.2860.2120.2120.720

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Apple Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ShillerPE 94.56103.35106.8047.1547.9344.5934.5136.4719.540.00

Apple Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 34.7736.4726.3520.2017.2519.5421.3718.8321.410.00
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