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Adobe Systems Inc (NAS:ADBE)
Shiller P/E Ratio
78.85 (As of Today)

As of today, Adobe Systems Inc's current share price is $100.14. Adobe Systems Inc's E10 for the quarter that ended in Feb. 2016 was $1.27. Adobe Systems Inc's Shiller P/E Ratio for today is 78.85.

ADBE' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.56   Max: 78.73
Current: 78.73

18.56
78.73

During the past 13 years, Adobe Systems Inc's highest Shiller P/E Ratio was 78.73. The lowest was 18.56. And the median was 40.40.

ADBE's Shiller P/E Ratio is ranked lower than
83% of the 284 Companies
in the Global Software - Application industry.

( Industry Median: 34.21 vs. ADBE: 78.73 )

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.

Adobe Systems Inc's adjusted earnings per share data for the three months ended in Feb. 2016 was $0.500. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.27 for the trailing ten years ended in Feb. 2016.


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.

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

Shiller P/E Ratio=Share Price/E10
=100.14/1.27
=78.85

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

Adobe Systems Inc's E10 for the fiscal year that ended in Nov15 is calculated as:

For example, Adobe Systems Inc's adjusted earnings per share data for the three months ended in Feb. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2016 (Change)*Current CPI (Feb. 2016)
=0.5/237.111*237.111
=0.500

Current CPI (Feb. 2016) = 237.111.

Adobe Systems Inc Quarterly Data

201311201402201405201408201411201502201505201508201511201602
per share eps 0.1270.0900.1700.0900.1730.1700.2900.3400.4390.500
CPI 233.069234.781237.900237.852236.151234.722237.805238.316237.336237.111
Adj_EPS 0.1290.0910.1690.0900.1740.1720.2890.3380.4390.500
201105201108201111201202201205201208201211201302201305201308
per share eps 0.4500.3900.3500.3700.4500.4000.4410.1300.1500.160
CPI 225.964226.545226.230227.663229.815230.379230.221232.166232.945233.877
Adj_EPS 0.4720.4080.3670.3850.4640.4120.4540.1330.1530.162
200811200902200905200908200911201002201005201008201011201102
per share eps 0.4590.3000.2400.260-0.0620.2400.2800.4400.5250.460
CPI 212.425212.193213.856215.834216.330216.741218.178218.312218.803221.309
Adj_EPS 0.5120.3350.2660.286-0.0680.2630.3040.4780.5690.493
200605200608200611200702200705200708200711200802200805200808
per share eps 0.2000.1600.3000.2400.2500.3400.3780.3800.4000.350
CPI 202.500203.900201.500203.499207.949207.917210.177211.693216.632219.086
Adj_EPS 0.2340.1860.3530.2800.2850.3880.4260.4260.4380.379

Add all the adjusted EPS together and divide 10 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.

Adobe Systems Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
ShillerPE 60.7755.0525.9838.0027.5623.8526.8643.6658.8474.31

Adobe Systems Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
ShillerPE 43.6653.6949.9156.3758.8464.8363.9063.5574.3166.90
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