Switch to:
A O Smith Corp (NYSE:AOS)
Shiller P/E Ratio
26.60 (As of Today)

As of today, A O Smith Corp's current share price is $49.02. A O Smith Corp's E10 for the quarter that ended in Jun. 2014 was $1.84. A O Smith Corp's Shiller P/E Ratio for today is 26.60.

AOS' s 10-Year Shiller P/E Ratio Range
Min: 10.33   Max: 38.14
Current: 26.6

10.33
38.14

During the past 13 years, A O Smith Corp's highest Shiller P/E Ratio was 38.14. The lowest was 10.33. And the median was 19.56.

AOS's Shiller P/E Ratiois ranked higher than
69% of the 1053 Companies
in the Global Diversified Industrials industry.

( Industry Median: 23.91 vs. AOS: 26.60 )

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.

A O Smith Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.629. 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 $1.84 for the trailing six years ended in Jun. 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.

A O Smith Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=49.02/1.84
=26.64

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

A O Smith Corp's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, A O Smith Corp'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
=0.63/238.343*238.064
=0.629

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

Current CPI = 238.064.

A O Smith Corp Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.5100.3800.4000.4220.4200.4500.5000.4610.5100.630
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.5290.3940.4120.4380.4300.4590.5080.4710.5140.629
200909200912201003201006201009201012201103201106201109201112
per share eps 0.3800.2840.3350.1800.3450.3470.4400.5401.9550.345
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.4190.3130.3660.1970.3760.3770.4690.5702.0510.364
200809200812200903200906
per share eps 0.2330.0740.0930.280
CPI 218.783210.228212.709215.693
Adj_EPS 0.2540.0840.1040.309

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.

A O Smith Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 19.7723.8622.4416.6513.6218.0720.4114.1520.2131.37

A O Smith Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 15.1416.3318.6420.2122.6922.0926.9631.3725.8926.84
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK