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

As of today, Air Products & Chemicals Inc's current share price is $147.21. Air Products & Chemicals Inc's E10 for the quarter that ended in Dec. 2014 was $5.06. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 29.09.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.59   Max: 31.24
Current: 30.2

12.59
31.24

During the past 13 years, Air Products & Chemicals Inc's highest Shiller P/E Ratio was 31.24. The lowest was 12.59. And the median was 23.01.

APD's Shiller P/E Ratiois ranked higher than
79% of the 1181 Companies
in the Global Chemicals industry.

( Industry Median: 53.57 vs. APD: 30.20 )

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 Dec. 2014 was $1.498. 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 $5.06 for the trailing six years ended in Dec. 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
=147.21/5.06
=29.09

* 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 Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=1.5/235.51*235.189
=1.498

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

Current CPI = 235.189.

Air Products & Chemicals Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.6451.3101.3801.3600.6421.3501.3201.4600.4801.500
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031235.510
Adj_EPS 0.6561.3421.3941.3700.6451.3621.3141.4410.4741.498
201003201006201009201012201103201106201109201112201203201206
per share eps 1.1601.1701.2501.2301.3901.5001.5091.1601.3802.260
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 1.2541.2621.3461.3201.4631.5631.5641.2091.4152.316
200903200906200909200912
per share eps 0.9700.5301.1311.160
CPI 212.709215.693215.969215.949
Adj_EPS 1.0730.5781.2321.263

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 24.4724.3530.8819.3821.2420.8817.0917.0221.9227.33

Air Products & Chemicals Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 17.0217.2217.5518.4921.9223.2024.6825.4227.330.00
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