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

As of today, Air Products & Chemicals Inc's current share price is $116.31. Air Products & Chemicals Inc's E10 for the quarter that ended in Dec. 2013 was $4.85. Air Products & Chemicals Inc's Shiller P/E Ratio for today is 24.20.

APD' s 10-Year Shiller P/E Ratio Range
Min: 12.55   Max: 31.24
Current: 24.2

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 22.43.

APD's Shiller P/E Ratiois ranked higher than
58% of the 442 Companies
in the Global Chemicals industry.

( Industry Median: 22.21 vs. APD: 24.20 )

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. 2013 was $1.370. 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 $4.85 for the trailing six years ended in Dec. 2013.


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
=116.31/4.85
=23.98

* 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 Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=1.35/233.049*236.511
=1.370

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

Current CPI = 236.511.

Air Products & Chemicals Inc Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 1.5091.1601.3802.2600.6451.3101.3801.3600.6421.350
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.5731.2161.4232.3290.6591.3491.4021.3780.6481.370
200903200906200909200912201003201006201009201012201103201106
per share eps 0.9700.5301.1311.1601.1601.1701.2501.2301.3901.500
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 1.0790.5811.2391.2701.2611.2701.3531.3271.4711.572
200803200806200809200812
per share eps 1.4300.3201.2050.320
CPI 213.528218.815218.783210.228
Adj_EPS 1.5840.3461.3030.360

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 26.7024.5624.4430.7619.2921.1620.7917.0116.9322.01

Air Products & Chemicals Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 17.0118.9819.8016.6916.9317.2917.6218.3922.0123.07
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