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Applied Materials Inc (NAS:AMAT)
Shiller P/E Ratio
39.30 (As of Today)

As of today, Applied Materials Inc's current share price is \$31.44. Applied Materials Inc's E10 for the quarter that ended in Jul. 2016 was \$0.80. Applied Materials Inc's Shiller P/E Ratio for today is 39.30.

AMAT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 11.44   Max: 39.59
Current: 38.29

11.44
39.59

During the past 13 years, Applied Materials Inc's highest Shiller P/E Ratio was 39.59. The lowest was 11.44. And the median was 22.74.

AMAT's Shiller P/E Ratio is ranked higher than
58% of the 102 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 42.44 vs. AMAT: 38.29 )

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.

Applied Materials Inc's adjusted earnings per share data for the three months ended in Jul. 2016 was \$0.460. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$0.80 for the trailing ten years ended in Jul. 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.

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

 Shiller P/E Ratio = Share Price / E10 = 31.44 / 0.80 = 39.30

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Applied Materials Inc's E10 for the fiscal year that ended in Oct15 is calculated as:

For example, Applied Materials Inc's adjusted earnings per share data for the three months ended in Jul. 2016 was:

 Adj_EPS = Earnigns per Share / CPI of Jul. 2016 (Change) * Current CPI (Jul. 2016) = 0.46 / 240.628 * 240.628 = 0.460

Current CPI (Jul. 2016) = 240.628.

Applied Materials Inc Quarterly Data

 201407 201410 201501 201504 201507 201510 201601 201604 201607 201610 per share eps 0.24 0.21 0.28 0.29 0.27 0.28 0.25 0.29 0.46 0.56 CPI 238.25 237.433 233.707 236.599 238.654 237.838 236.916 239.261 240.628 241.718 Adj_EPS 0.242 0.213 0.288 0.295 0.272 0.283 0.254 0.292 0.46 0.557 201201 201204 201207 201210 201301 201304 201307 201310 201401 201404 per share eps 0.09 0.22 0.17 -0.4 0.03 -0.11 0.14 0.15 0.21 0.21 CPI 226.665 230.085 229.104 231.317 230.28 232.531 233.596 233.546 233.916 237.072 Adj_EPS 0.096 0.23 0.179 -0.416 0.031 -0.114 0.144 0.155 0.216 0.213 200907 200910 201001 201004 201007 201010 201101 201104 201107 201110 per share eps -0.04 0.1 0.061 0.2 0.09 0.35 0.38 0.37 0.36 0.35 CPI 215.351 216.177 216.687 218.009 218.011 218.711 220.223 224.906 225.922 226.421 Adj_EPS -0.045 0.111 0.068 0.221 0.099 0.385 0.415 0.396 0.383 0.372 200701 200704 200707 200710 200801 200804 200807 200810 200901 200904 per share eps 0.29 0.29 0.34 0.29 0.19 0.22 0.12 0.17 -0.1 -0.19 CPI 202.416 206.686 208.299 208.936 211.08 214.823 219.964 216.573 211.143 213.24 Adj_EPS 0.345 0.338 0.393 0.334 0.217 0.246 0.131 0.189 -0.114 -0.214

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Applied Materials Inc Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 ShillerPE 29.66 17.75 18.89 21.67 17.61 15.12 24.13 29.74 21.90 35.44

Applied Materials Inc Quarterly Data

 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 ShillerPE 27.80 29.74 30.76 26.15 22.75 21.90 22.63 26.05 32.84 35.44
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