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

As of today, Air Products & Chemicals Inc's current share price is $149.12. Air Products & Chemicals Inc's E10 for the quarter that ended in Sep. 2014 was $4.88. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 30.56.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.55   Max: 31.24
Current: 30.57

12.55
31.24

During the past 13 years, Air Products & Chemicals Inc's highest Shiller P/E Ratio was 31.24. The lowest was 12.55. And the median was 22.94.

APD's Shiller P/E Ratiois ranked higher than
77% of the 1166 Companies
in the Global Chemicals industry.

( Industry Median: 51.79 vs. APD: 30.57 )

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 Sep. 2014 was $0.476. 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 $4.88 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.

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

Shiller P/E Ratio=Share Price/E10
=149.12/4.88
=30.56

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.481/238.031*235.51
=0.476

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

Current CPI = 235.51.

Air Products & Chemicals Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 2.2600.6451.3101.3801.3600.6421.3501.3201.4600.481
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 2.3190.6561.3441.3961.3720.6461.3641.3161.4430.476
200912201003201006201009201012201103201106201109201112201203
per share eps 1.1601.1601.1701.2501.2301.3901.5001.5091.1601.380
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 1.2651.2551.2641.3481.3221.4651.5651.5661.2111.417
200812200903200906200909
per share eps 0.3200.9700.5301.131
CPI 210.228212.709215.693215.969
Adj_EPS 0.3581.0740.5791.233

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 24.4624.3430.8819.3721.2420.8817.0917.0122.1127.29

Air Products & Chemicals Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 16.7617.0117.3717.5318.4722.1123.1624.6425.3927.29
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