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Applied Materials Inc (NAS:AMAT)
Shiller PE Ratio
47.22 (As of Today)

As of today, Applied Materials Inc's current share price is $40.61. Applied Materials Inc's E10 for the quarter that ended in Jan. 2017 was $0.86. Applied Materials Inc's Shiller P/E Ratio for today is 47.22.

AMAT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.44   Max: 48.25
Current: 47.42

11.44
48.25

During the past 13 years, Applied Materials Inc's highest Shiller P/E Ratio was 48.25. The lowest was 11.44. And the median was 23.61.

AMAT's Shiller PE Ratio is ranked higher than
51% of the 98 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 9999.00 vs. AMAT: 47.42 )

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 Jan. 2017 was $0.650. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.86 for the trailing ten years ended in Jan. 2017.


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
=40.61/0.86
=47.22

* 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 Oct16 is calculated as:

For example, Applied Materials Inc's adjusted earnings per share data for the three months ended in Jan. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2017 (Change)*Current CPI (Jan. 2017)
=0.65/242.839*242.839
=0.650

Current CPI (Jan. 2017) = 242.839.

Applied Materials Inc Quarterly Data

201410201501201504201507201510201601201604201607201610201701
per share eps 0.2100.2800.2900.2700.2800.2500.2900.4600.5500.650
CPI 237.433233.707236.599238.654237.838236.916239.261240.628241.729242.839
Adj_EPS 0.2150.2910.2980.2750.2860.2560.2940.4640.5530.650
201204201207201210201301201304201307201310201401201404201407
per share eps 0.2200.170-0.4000.030-0.1100.1400.1500.2100.2100.240
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.250
Adj_EPS 0.2320.180-0.4200.032-0.1150.1460.1560.2180.2150.245
200910201001201004201007201010201101201104201107201110201201
per share eps 0.1000.0610.2000.0900.3500.3800.3700.3600.3500.090
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS 0.1120.0680.2230.1000.3890.4190.4000.3870.3750.096
200704200707200710200801200804200807200810200901200904200907
per share eps 0.2900.3400.2900.1900.2200.1200.170-0.100-0.190-0.040
CPI 206.686208.299208.936211.080214.823219.964216.573211.143213.240215.351
Adj_EPS 0.3410.3960.3370.2190.2490.1320.191-0.115-0.216-0.045

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 local exchange's currency.

Applied Materials Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ShillerPE 29.6517.7418.8821.6617.6115.1324.1429.7721.9135.18

Applied Materials Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ShillerPE 29.7730.7826.1622.7621.9122.6426.0732.8735.1839.99
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