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

As of today, Applied Materials Inc's current share price is $29.66. Applied Materials Inc's E10 for the quarter that ended in Jul. 2016 was $0.79. Applied Materials Inc's Shiller P/E Ratio for today is 37.54.

AMAT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 11.44   Max: 38.04
Current: 37.33

11.44
38.04

During the past 13 years, Applied Materials Inc's highest Shiller P/E Ratio was 38.04. The lowest was 11.44. And the median was 22.82.

AMAT's Shiller P/E Ratio is ranked higher than
60% of the 100 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 41.20 vs. AMAT: 37.33 )

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 $0.79 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
=29.66/0.79
=37.54

* 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 Oct14 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)
=0.46/240.647*240.647
=0.460

Current CPI (Jul. 2016) = 240.647.

Applied Materials Inc Quarterly Data

201404201407201410201501201504201507201510201601201604201607
per share eps 0.2100.2400.2100.2800.2900.2700.2800.2500.2900.460
CPI 237.072238.250237.433233.707236.599238.654237.838236.916239.261240.647
Adj_EPS 0.2130.2420.2130.2880.2950.2720.2830.2540.2920.460
201110201201201204201207201210201301201304201307201310201401
per share eps 0.3500.0900.2200.170-0.4000.030-0.1100.1400.1500.210
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 0.3720.0960.2300.179-0.4160.031-0.1140.1440.1550.216
200904200907200910201001201004201007201010201101201104201107
per share eps -0.190-0.0400.1000.0610.2000.0900.3500.3800.3700.360
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS -0.214-0.0450.1110.0680.2210.0990.3850.4150.3960.383
200610200701200704200707200710200801200804200807200810200901
per share eps 0.3000.2900.2900.3400.2900.1900.2200.1200.170-0.100
CPI 201.800202.416206.686208.299208.936211.080214.823219.964216.573211.143
Adj_EPS 0.3580.3450.3380.3930.3340.2170.2460.1310.189-0.114

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.

Applied Materials Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ShillerPE 30.5429.6117.7118.8621.6417.5915.1024.1029.7021.85

Applied Materials Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
ShillerPE 24.9527.7529.7031.0126.3522.9221.8522.5825.9933.09
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