Switch to:
GuruFocus has detected 6 Warning Signs with Brady Corp \$BRC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Shiller PE Ratio
51.25 (As of Today)

As of today, Brady Corp's current share price is \$38.95. Brady Corp's E10 for the quarter that ended in Jan. 2017 was \$0.76. Brady Corp's Shiller P/E Ratio for today is 51.25.

BRC' s Shiller PE Ratio Range Over the Past 10 Years
Min: 10.59   Max: 52.6
Current: 51.38

10.59
52.6

During the past 13 years, Brady Corp's highest Shiller P/E Ratio was 52.60. The lowest was 10.59. And the median was 23.22.

BRC's Shiller PE Ratio is ranked lower than
89% of the 45 Companies
in the Global Security & Protection Services industry.

( Industry Median: 20.26 vs. BRC: 51.38 )

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.

Brady Corp's adjusted earnings per share data for the three months ended in Jan. 2017 was \$0.490. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$0.76 for the trailing ten years ended in Jan. 2017.

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.

Brady Corp's Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 38.95 / 0.76 = 51.25

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Brady Corp's E10 for the fiscal year that ended in Jul16 is calculated as:

For example, Brady Corp's adjusted earnings per share data for the three months ended in Jan. 2017 was:

 Adj_EPS = Earnigns per Share / CPI of Jan. 2017 (Change) * Current CPI (Jan. 2017) = 0.49 / 242.839 * 242.839 = 0.490

Current CPI (Jan. 2017) = 242.839.

 201410 201501 201504 201507 201510 201601 201604 201607 201610 201701 per share eps 0.26 0.23 0.33 -0.77 0.37 0.3 0.42 0.5 0.44 0.49 CPI 237.433 233.707 236.599 238.654 237.838 236.916 239.261 240.628 241.729 242.839 Adj_EPS 0.266 0.239 0.339 -0.784 0.378 0.308 0.426 0.505 0.442 0.49 201204 201207 201210 201301 201304 201307 201310 201401 201404 201407 per share eps 0.52 0.229 0.53 -0.17 0.081 -3.464 0.46 0.31 0.46 -2.13 CPI 230.085 229.104 231.317 230.28 232.531 233.596 233.546 233.916 237.072 238.25 Adj_EPS 0.549 0.243 0.556 -0.179 0.085 -3.601 0.478 0.322 0.471 -2.171 200910 201001 201004 201007 201010 201101 201104 201107 201110 201201 per share eps 0.41 0.28 0.45 0.41 0.5 0.46 0.54 0.57 0.6 -1.72 CPI 216.177 216.687 218.009 218.011 218.711 220.223 224.906 225.922 226.421 226.665 Adj_EPS 0.461 0.314 0.501 0.457 0.555 0.507 0.583 0.613 0.644 -1.843 200704 200707 200710 200801 200804 200807 200810 200901 200904 200907 per share eps 0.53 0.48 0.66 0.48 0.63 0.64 0.69 -0.08 0.34 0.36 CPI 206.686 208.299 208.936 211.08 214.823 219.964 216.573 211.143 213.24 215.351 Adj_EPS 0.623 0.56 0.767 0.552 0.712 0.707 0.774 -0.092 0.387 0.406

Add all the adjusted EPS together and divide 10 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.