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

As of today, Air Products & Chemicals Inc's current share price is $128.82. Air Products & Chemicals Inc's E10 for the quarter that ended in Mar. 2015 was $5.18. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 24.87.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.52   Max: 31.28
Current: 24.88

12.52
31.28

During the past 13 years, Air Products & Chemicals Inc's highest Shiller P/E Ratio was 31.28. The lowest was 12.52. And the median was 22.97.

APD's Shiller P/E Ratiois ranked lower than
57% of the 469 Companies
in the Global Chemicals industry.

( Industry Median: 21.89 vs. APD: 24.88 )

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 Mar. 2015 was $1.345. 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 $5.18 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.

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

Shiller P/E Ratio=Share Price/E10
=128.82/5.18
=24.87

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=1.33/236.119*238.709
=1.345

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

Current CPI = 238.709.

Air Products & Chemicals Inc Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 1.3101.3801.3600.6421.3501.3201.4600.4811.5001.330
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 1.3621.4151.3900.6551.3831.3331.4620.4821.5251.345
201006201009201012201103201106201109201112201203201206201209
per share eps 1.1701.2501.2301.3901.5001.5091.1601.3802.2600.645
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 1.2811.3661.3401.4851.5861.5881.2271.4362.3510.665
200906200909200912201003
per share eps 0.5301.1311.1601.160
CPI 215.693215.969215.949217.631
Adj_EPS 0.5871.2501.2821.272

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 24.5424.4230.7519.3021.3520.7817.0116.9422.0126.33

Air Products & Chemicals Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 17.2917.6218.3922.0123.0724.5525.3026.3328.6329.21
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