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

As of today, Applied Materials Inc's current share price is $17.57. Applied Materials Inc's E10 for the quarter that ended in Apr. 2015 was $0.68. Applied Materials Inc's Shiller P/E Ratio for today is 25.84.

AMAT' s 10-Year Shiller P/E Ratio Range
Min: 10.84   Max: 47.53
Current: 25.6

10.84
47.53

During the past 13 years, Applied Materials Inc's highest Shiller P/E Ratio was 47.53. The lowest was 10.84. And the median was 27.06.

AMAT's Shiller P/E Ratiois ranked higher than
57% of the 252 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 27.74 vs. AMAT: 25.60 )

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 Apr. 2015 was $0.293. 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 $0.68 for the trailing six years ended in Apr. 2015.


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
=17.57/0.68
=25.84

* 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 Apr. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2015*CPI of Current
=0.29/236.599*238.709
=0.293

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 238.709.

Applied Materials Inc Quarterly Data

201301201304201307201310201401201404201407201410201501201504
per share eps 0.030-0.1100.1400.1500.2100.2100.2400.2070.2800.290
CPI 230.280232.531233.596233.546233.916237.072238.250237.433233.707236.599
Adj_EPS 0.031-0.1130.1430.1530.2140.2110.2400.2080.2860.293
201007201010201101201104201107201110201201201204201207201210
per share eps 0.0900.3480.3800.3700.3600.3440.0900.2200.170-0.423
CPI 218.011218.711220.223224.906225.922226.421226.665230.085229.104231.317
Adj_EPS 0.0990.3800.4120.3930.3800.3630.0950.2280.177-0.437
200907200910201001201004
per share eps -0.0400.1030.0600.200
CPI 215.351216.177216.687218.009
Adj_EPS -0.0440.1140.0660.219

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

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ShillerPE 28.2833.6729.2816.6916.2117.1014.4415.2835.2141.79

Applied Materials Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ShillerPE 20.2725.4230.4435.2133.1737.6139.5441.7938.1028.97
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