Switch to:
Brocade Communications Systems Inc (NAS:BRCD)
Shiller P/E Ratio
21.69 (As of Today)

As of today, Brocade Communications Systems Inc's current share price is $7.81. Brocade Communications Systems Inc's E10 for the quarter that ended in Oct. 2015 was $0.36. Brocade Communications Systems Inc's Shiller P/E Ratio for today is 21.69.

BRCD' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 16.62   Max: 78.42
Current: 21.96

16.62
78.42

During the past 13 years, Brocade Communications Systems Inc's highest Shiller P/E Ratio was 78.42. The lowest was 16.62. And the median was 39.50.

BRCD's Shiller P/E Ratio is ranked higher than
56% of the 318 Companies
in the Global Data Storage industry.

( Industry Median: 25.18 vs. BRCD: 21.96 )

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.

Brocade Communications Systems Inc's adjusted earnings per share data for the three months ended in Oct. 2015 was $0.200. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.36 for the trailing ten years ended in Oct. 2015.


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.

Brocade Communications Systems Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=7.81/0.36
=21.69

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

Brocade Communications Systems Inc's E10 for the fiscal year that ended in Oct15 is calculated as:

For example, Brocade Communications Systems Inc's adjusted earnings per share data for the three months ended in Oct. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2015 (Change)*Current CPI (Oct. 2015)
=0.2/237.838*237.838
=0.200

Current CPI (Oct. 2015) = 237.838.

Brocade Communications Systems Inc Quarterly Data

201307201310201401201404201407201410201501201504201507201510
per share eps 0.2600.1400.180-0.0300.2000.1900.2000.1800.2100.200
CPI 233.596233.546233.916237.072238.250237.433233.707236.599238.654237.838
Adj_EPS 0.2650.1430.183-0.0300.2000.1900.2040.1810.2090.200
201101201104201107201110201201201204201207201210201301201304
per share eps 0.0500.0500.000-0.0100.1200.0800.0900.110-0.0500.100
CPI 220.223224.906225.922226.421226.665230.085229.104231.317230.280232.531
Adj_EPS 0.0540.0530.000-0.0110.1260.0830.0930.113-0.0520.102
200807200810200901200904200907200910201001201004201007201010
per share eps 0.0500.090-0.060-0.170-0.0600.0900.1100.0500.0500.040
CPI 219.964216.573211.143213.240215.351216.177216.687218.009218.011218.711
Adj_EPS 0.0540.099-0.068-0.190-0.0660.0990.1210.0550.0550.043
200601200604200607200610200701200704200707200710200801200804
per share eps 0.0400.0500.0900.0800.1200.0000.0300.0900.0500.230
CPI 198.300201.500203.500201.800202.416206.686208.299208.936211.080214.823
Adj_EPS 0.0480.0590.1050.0940.1410.0000.0340.1020.0560.255

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

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.

Brocade Communications Systems Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ShillerPE 0.000.0025.3964.8751.7131.4547.1833.5835.4429.30

Brocade Communications Systems Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
ShillerPE 29.2433.5833.6833.7931.4335.4436.4435.6329.5629.30
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK