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Analog Devices Inc (NAS:ADI)
Shiller P/E Ratio
23.10 (As of Today)

As of today, Analog Devices Inc's current share price is $50.16. Analog Devices Inc's E10 for the quarter that ended in Apr. 2014 was $2.17. Analog Devices Inc's Shiller P/E Ratio for today is 23.10.

ADI' s 10-Year Shiller P/E Ratio Range
Min: 10.35   Max: 64.61
Current: 23.1

10.35
64.61

During the past 13 years, Analog Devices Inc's highest Shiller P/E Ratio was 64.61. The lowest was 10.35. And the median was 21.83.

ADI's Shiller P/E Ratiois ranked higher than
94% of the 1080 Companies
in the Global Semiconductors industry.

( Industry Median: 9999.00 vs. ADI: 23.10 )

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.

Analog Devices Inc's adjusted earnings per share data for the three months ended in Apr. 2014 was $0.594. 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 $2.17 for the trailing six years ended in Apr. 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.

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

Shiller P/E Ratio=Share Price/E10
=50.16/2.17
=23.12

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

Analog Devices Inc's E10 for the fiscal year that ended in Oct13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Apr. 2014*CPI of Current
=0.59/237.072*238.786
=0.594

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

Current CPI = 238.786.

Analog Devices Inc Quarterly Data

201201201204201207201210201301201304201307201310201401201404
per share eps 0.4600.5300.5600.5820.4200.5200.5600.6350.4800.590
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.4850.5500.5840.6010.4360.5340.5720.6490.4900.594
200907200910201001201004201007201010201101201104201107201110
per share eps 0.2200.3590.4000.5500.6500.7340.7200.7800.7100.600
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.2440.3970.4410.6020.7120.8010.7810.8280.7500.633
200807200810200901200904
per share eps 0.4700.4900.0900.180
CPI 219.964216.573211.143213.240
Adj_EPS 0.5100.5400.1020.202

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.

Analog Devices Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ShillerPE 40.3131.1729.6528.3413.2516.0219.5317.8318.0721.82

Analog Devices Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ShillerPE 18.9318.5618.4318.0720.5020.3122.3321.8222.8323.62
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