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As of today, Amgen Inc's current share price is $137.51. Amgen Inc's E10 for the quarter that ended in Jun. 2014 was $5.44. Amgen Inc's Shiller P/E Ratio for today is 25.29.
During the past 13 years, Amgen Inc's highest Shiller P/E Ratio was 80.07. The lowest was 12.76. And the median was 22.49.
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.
Amgen Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was $1.999. 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 $5.44 for the trailing six years ended in Jun. 2014.
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.
Amgen Inc's Shiller P/E Ratio for today is calculated as
|Shiller P/E Ratio||=||Share Price||/||E10|
Amgen Inc's E10 for the fiscal year that ended in Dec13 is calculated as:
For example, Amgen Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was:
|Adj_EPS||=||Earnigns per Share||/||CPI of Jun. 2014||*||CPI of Current|
Since most companies do not have as long as 10 years history, here we use 6 years to calculate:
Current CPI = 237.056.
Amgen Inc Quarterly Data
|per share eps||1.480||1.610||1.410||1.009||1.880||1.650||1.790||1.329||1.400||2.010|
|per share eps||1.360||0.923||1.180||1.250||1.280||1.079||1.200||1.250||0.500||1.089|
|per share eps||1.090||0.769||0.980||1.250|
Add all the adjusted EPS together and divide 6 will get our E10.
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.
The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a companys business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.
Amgen Inc Annual Data
Amgen Inc Quarterly Data