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

As of today, Air Products & Chemicals Inc's current share price is $152.75. Air Products & Chemicals Inc's E10 for the quarter that ended in Dec. 2014 was $5.03. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 30.37.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.55   Max: 31.34
Current: 30.4

12.55
31.34

During the past 13 years, Air Products & Chemicals Inc's highest Shiller P/E Ratio was 31.34. The lowest was 12.55. And the median was 22.90.

APD's Shiller P/E Ratiois ranked higher than
73% of the 1173 Companies
in the Global Chemicals industry.

( Industry Median: 44.22 vs. APD: 30.40 )

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 $1.494. 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 $5.03 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
=152.75/5.03
=30.37

* 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
=1.5/234.812*233.808
=1.494

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

Current CPI = 233.808.

Air Products & Chemicals Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.6451.3101.3801.3600.6421.3501.3201.4600.4811.500
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.6521.3341.3861.3620.6411.3541.3061.4320.4721.494
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 1.2461.2551.3381.3121.4541.5541.5551.2021.4072.303
200903200906200909200912
per share eps 0.9700.5301.1311.160
CPI 212.709215.693215.969215.949
Adj_EPS 1.0660.5751.2241.256

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 23.7923.6030.8419.3321.2120.8517.0516.9622.0526.36

Air Products & Chemicals Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 16.9617.3217.4818.4222.0523.1024.5825.3326.3628.67
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