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

As of today, A O Smith Corp's current share price is $70.29. A O Smith Corp's E10 for the quarter that ended in Mar. 2015 was $2.06. A O Smith Corp's Shiller P/E Ratio for today is 34.12.

AOS' s 10-Year Shiller P/E Ratio Range
Min: 10.33   Max: 38.14
Current: 34

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 20.26.

AOS's Shiller P/E Ratiois ranked lower than
86% of the 787 Companies
in the Global Diversified Industrials industry.

( Industry Median: 21.09 vs. AOS: 34.00 )

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 Mar. 2015 was $0.653. 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 $2.06 for the trailing six years ended in Mar. 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.

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

Shiller P/E Ratio=Share Price/E10
=70.29/2.06
=34.12

* 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 Dec14 is calculated as:

For example, A O Smith Corp's adjusted earnings per share data for the three months ended in Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.65/236.119*237.167
=0.653

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

Current CPI = 237.167.

A O Smith Corp Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.4220.4200.4500.5000.4610.5100.6300.5600.5900.650
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.4360.4280.4570.5060.4690.5120.6270.5580.5960.653
201006201009201012201103201106201109201112201203201206201209
per share eps 0.1800.3450.3470.4400.5401.9550.3450.5100.3800.400
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.1960.3750.3750.4670.5672.0440.3630.5270.3930.410
200906200909200912201003
per share eps 0.2800.3800.2840.335
CPI 215.693215.969215.949217.631
Adj_EPS 0.3080.4170.3120.365

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 23.9122.4916.6913.6618.1020.2614.1820.0831.4828.92

A O Smith Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 20.0822.7622.1626.7931.4825.7327.0425.0928.9231.86
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