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

As of today, A O Smith Corp's current share price is $63.20. A O Smith Corp's E10 for the quarter that ended in Sep. 2014 was $1.89. A O Smith Corp's Shiller P/E Ratio for today is 33.44.

AOS' s 10-Year Shiller P/E Ratio Range
Min: 10.19   Max: 38.14
Current: 33.5

10.19
38.14

During the past 13 years, A O Smith Corp's highest Shiller P/E Ratio was 38.14. The lowest was 10.19. And the median was 19.90.

AOS's Shiller P/E Ratiois ranked higher than
80% of the 2199 Companies
in the Global Diversified Industrials industry.

( Industry Median: 57.67 vs. AOS: 33.50 )

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 Sep. 2014 was $0.550. 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 $1.89 for the trailing six years ended in Sep. 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
=63.20/1.89
=33.44

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.56/238.031*233.808
=0.550

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

Current CPI = 233.808.

A O Smith Corp Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.4000.4220.4200.4500.5000.4610.5100.6300.5600.590
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.4040.4300.4220.4510.4990.4630.5050.6180.5500.587
201003201006201009201012201103201106201109201112201203201206
per share eps 0.3350.1800.3450.3470.4400.5401.9550.3450.5100.380
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.3600.1930.3690.3700.4600.5592.0150.3570.5200.387
200903200906200909200912
per share eps 0.0930.2800.3800.284
CPI 212.709215.693215.969215.949
Adj_EPS 0.1020.3040.4110.307

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 23.8822.4616.6513.6218.0520.3914.2620.1731.3229.07

A O Smith Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 18.6020.1722.6422.0526.9131.3225.8526.9024.9729.07
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