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Aruba Networks Inc (NAS:ARUN)
Shiller P/E Ratio
(As of Today)

As of today, Aruba Networks Inc's current share price is $24.81. Aruba Networks Inc's E10 for the quarter that ended in Oct. 2014 was $-0.11. Aruba Networks Inc's Shiller P/E Ratio for today is .

ARUN' s 10-Year Shiller P/E Ratio Range
Min: -160.5   Max: 0.26
Current: 0

-160.5
0.26

During the past 13 years, Aruba Networks Inc's highest Shiller P/E Ratio was 0.26. The lowest was -160.50. And the median was 0.18.

ARUN's Shiller P/E Ratiois ranked higher than
55% of the 766 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.00 vs. ARUN: 0.00 )

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.

Aruba Networks Inc's adjusted earnings per share data for the three months ended in Oct. 2014 was $0.020. 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 $-0.11 for the trailing six years ended in Oct. 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.

Aruba Networks Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=24.81/-0.11
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Aruba Networks Inc's E10 for the fiscal year that ended in Jul14 is calculated as:

For example, Aruba Networks Inc's adjusted earnings per share data for the three months ended in Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=0.02/237.433*233.808
=0.020

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

Current CPI = 233.808.

Aruba Networks Inc Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps -0.0100.040-0.180-0.136-0.070-0.100-0.060-0.0380.0200.050
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433234.143
Adj_EPS -0.0100.041-0.181-0.136-0.070-0.100-0.059-0.0370.0200.050
201004201007201010201101201104201107201110201201201204201207
per share eps -0.0600.0050.020-0.0300.0300.5700.000-0.1100.050-0.027
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS -0.0640.0050.021-0.0320.0310.5900.000-0.1130.051-0.028
200904200907200910201001
per share eps -0.070-0.052-0.280-0.050
CPI 213.240215.351216.177216.687
Adj_EPS -0.077-0.056-0.303-0.054

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.

Aruba Networks Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
ShillerPE 0.000.000.000.000.000.000.00-90.000.000.00

Aruba Networks Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE -126.970.000.000.000.000.000.000.000.000.00
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