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

As of today, Adobe Systems Inc's current share price is $64.04. Adobe Systems Inc's E10 for the quarter that ended in Feb. 2014 was $1.31. Adobe Systems Inc's Shiller P/E Ratio for today is 48.60.

ADBE' s 10-Year Shiller P/E Ratio Range
Min: 14.78   Max: 56.33
Current: 48.6

14.78
56.33

During the past 13 years, Adobe Systems Inc's highest Shiller P/E Ratio was 56.33. The lowest was 14.78. And the median was 37.34.

ADBE's Shiller P/E Ratiois ranked lower than
52% of the 616 Companies
in the Global Software - Application industry.

( Industry Median: 29.33 vs. ADBE: 48.60 )

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. 2014 was $0.091. 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 $1.31 for the trailing six years ended in Feb. 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.

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

Shiller P/E Ratio=Share Price/E10
=64.04/1.31
=48.89

* 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 Nov13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Feb. 2014*CPI of Current
=0.09/234.781*236.511
=0.091

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

Current CPI = 236.511.

Adobe Systems Inc Quarterly Data

201111201202201205201208201211201302201305201308201311201402
per share eps 0.3500.3700.4500.4000.4410.1300.1500.1600.1270.090
CPI 226.230227.663229.815230.379230.221232.166232.945233.877233.069234.781
Adj_EPS 0.3660.3840.4630.4110.4530.1320.1520.1620.1290.091
200905200908200911201002201005201008201011201102201105201108
per share eps 0.2400.260-0.0620.2400.2800.4400.5250.4600.4500.390
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 0.2650.285-0.0680.2620.3040.4770.5670.4920.4710.407
200805200808200811200902
per share eps 0.4000.3500.4590.300
CPI 216.632219.086212.425212.193
Adj_EPS 0.4370.3780.5110.334

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.

Adobe Systems Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
ShillerPE 51.8445.7152.8946.4320.8730.5822.6020.9023.7541.94

Adobe Systems Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ShillerPE 20.9024.3022.1121.7123.7527.1530.0932.6141.9451.72
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