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

As of today, Applied Materials Inc's current share price is $22.80. Applied Materials Inc's E10 for the quarter that ended in Jul. 2014 was $0.53. Applied Materials Inc's Shiller P/E Ratio for today is 42.88.

AMAT' s 10-Year Shiller P/E Ratio Range
Min: 10.71   Max: 62.59
Current: 42.88

10.71
62.59

During the past 13 years, Applied Materials Inc's highest Shiller P/E Ratio was 62.59. The lowest was 10.71. And the median was 27.13.

AMAT's Shiller P/E Ratiois ranked higher than
85% of the 1080 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 9999.00 vs. AMAT: 42.88 )

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. 2014 was $0.240. 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 $0.53 for the trailing six years ended in Jul. 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.

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

Shiller P/E Ratio=Share Price/E10
=22.80/0.53
=43.02

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

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

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

Adj_EPS=Earnigns per Share/CPI of Jul. 2014*CPI of Current
=0.24/238.786*239.229
=0.240

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

Current CPI = 239.229.

Applied Materials Inc Quarterly Data

201204201207201210201301201304201307201310201401201404201407
per share eps 0.2200.170-0.4230.030-0.1100.1400.1500.2100.2100.240
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.786
Adj_EPS 0.2290.178-0.4370.031-0.1130.1430.1540.2150.2120.240
200910201001201004201007201010201101201104201107201110201201
per share eps 0.1030.0600.2000.0900.3480.3800.3700.3600.3440.090
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS 0.1140.0660.2190.0990.3810.4130.3940.3810.3630.095
200810200901200904200907
per share eps 0.169-0.100-0.190-0.040
CPI 216.573211.143213.240215.351
Adj_EPS 0.187-0.113-0.213-0.044

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.

Applied Materials Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ShillerPE 30.8928.2433.8529.4416.6416.3017.0314.5015.2235.07

Applied Materials Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 14.1013.3415.2220.1825.3130.3035.0733.0437.1240.02
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