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Broadcom Ltd (NAS:AVGO)
Shiller P/E Ratio
(As of Today)

As of today, Broadcom Ltd's current share price is $153.30. Broadcom Ltd's E10 for the quarter that ended in Jan. 2016 was $0.00. Broadcom Ltd's Shiller P/E Ratio for today is .

During the past 9 years, Broadcom Ltd's highest Shiller P/E Ratio was 75.31. The lowest was 32.83. And the median was 56.47.

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.

Broadcom Ltd's adjusted earnings per share data for the three months ended in Jan. 2016 was $1.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.00 for the trailing ten years ended in Jan. 2016.


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.

Broadcom Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=153.30/0.00
=

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

Broadcom Ltd's E10 for the fiscal year that ended in Oct15 is calculated as:

For example, Broadcom Ltd's adjusted earnings per share data for the three months ended in Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=1.3/236.916*236.916
=1.300

Current CPI (Jan. 2016) = 236.916.

Broadcom Ltd does not have a history long enough to calculate E10. Therefore GuruFocus does not calculate it.


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.

Broadcom Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ShillerPE 0.000.000.000.000.000.000.000.0054.520.00

Broadcom Ltd Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ShillerPE 0.0033.9838.3145.3654.5258.0957.4657.600.000.00
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