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Air Products & Chemicals Inc (NYSE:APD)
Shiller P/E Ratio
26.39 (As of Today)

As of today, Air Products & Chemicals Inc's current share price is $140.67. Air Products & Chemicals Inc's E10 for the quarter that ended in Jun. 2015 was $5.33. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 26.39.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.48   Max: 31.34
Current: 26.41

12.48
31.34

During the past 13 years, Air Products & Chemicals Inc's highest Shiller P/E Ratio was 31.34. The lowest was 12.48. And the median was 23.14.

APD's Shiller P/E Ratiois ranked lower than
65% of the 483 Companies
in the Global Chemicals industry.

( Industry Median: 19.52 vs. APD: 26.41 )

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.

Air Products & Chemicals Inc's adjusted earnings per share data for the three months ended in Jun. 2015 was $1.470. 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 $5.33 for the trailing six years ended in Jun. 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.

Air Products & Chemicals Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=140.67/5.33
=26.39

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

Air Products & Chemicals Inc's E10 for the fiscal year that ended in Sep14 is calculated as:

For example, Air Products & Chemicals Inc's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=1.47/238.638*238.662
=1.470

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

Current CPI = 238.662.

Air Products & Chemicals Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 1.3801.3600.6421.3501.3201.4600.4811.5001.3301.470
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 1.4151.3900.6541.3831.3331.4620.4821.5251.3441.470
201009201012201103201106201109201112201203201206201209201212
per share eps 1.2501.2301.3901.5001.5091.1601.3802.2600.6451.310
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 1.3661.3391.4851.5861.5871.2271.4362.3500.6651.362
200909200912201003201006
per share eps 1.1311.1601.1601.170
CPI 215.969215.949217.631217.965
Adj_EPS 1.2501.2821.2721.281

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.

Air Products & Chemicals Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ShillerPE 24.5524.4330.7619.3021.3520.7917.0216.9422.0226.34

Air Products & Chemicals Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 17.6218.3922.0223.0824.5625.3126.3428.6429.5025.69
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