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

As of today, Air Products & Chemicals Inc's current share price is $131.56. Air Products & Chemicals Inc's E10 for the quarter that ended in Jun. 2014 was $5.07. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 25.96.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.55   Max: 31.24
Current: 25.96

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
81% of the 1058 Companies
in the Global Chemicals industry.

( Industry Median: 59.47 vs. APD: 25.96 )

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. 2014 was $1.458. 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 $5.07 for the trailing six years ended in Jun. 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
=131.56/5.07
=25.95

* 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 Sep13 is calculated as:

For example, Air Products & Chemicals Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=1.46/238.343*238.064
=1.458

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.064.

Air Products & Chemicals Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 1.3802.2600.6451.3101.3801.3600.6421.3501.3201.460
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.4322.3450.6641.3581.4111.3870.6531.3791.3301.458
200909200912201003201006201009201012201103201106201109201112
per share eps 1.1311.1601.1601.1701.2501.2301.3901.5001.5091.160
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.2471.2791.2691.2781.3621.3361.4811.5821.5831.224
200809200812200903200906
per share eps 1.2050.3200.9700.530
CPI 218.783210.228212.709215.693
Adj_EPS 1.3110.3621.0860.585

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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ShillerPE 26.5224.6024.2830.8419.3621.2420.8817.0817.0022.10

Air Products & Chemicals Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 19.9016.7617.0017.3617.5218.4622.1023.1524.6325.38
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