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Babcock & Wilcox Co (NYSE:BWC)
Shiller P/E Ratio
22.32 (As of Today)

As of today, Babcock & Wilcox Co's current share price is \$31.02. Babcock & Wilcox Co's E10 for the quarter that ended in Dec. 2014 was \$1.39. Babcock & Wilcox Co's Shiller P/E Ratio for today is 22.32.

BWC' s 10-Year Shiller P/E Ratio Range
Min: 19.53   Max: 22.33
Current: 22.2

19.53
22.33

During the past 7 years, Babcock & Wilcox Co's highest Shiller P/E Ratio was 22.33. The lowest was 19.53. And the median was 21.35.

BWC's Shiller P/E Ratiois ranked higher than
85% of the 2163 Companies
in the Global Diversified Industrials industry.

( Industry Median: 60.44 vs. BWC: 22.20 )

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.

Babcock & Wilcox Co's adjusted earnings per share data for the three months ended in Dec. 2014 was \$-0.965. 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 \$1.39 for the trailing six years ended in Dec. 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.

Babcock & Wilcox Co's Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 31.02 / 1.39 = 22.32

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

Babcock & Wilcox Co's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Babcock & Wilcox Co's adjusted earnings per share data for the three months ended in Dec. 2014 was:

 Adj_EPS = Earnigns per Share / CPI of Dec. 2014 * CPI of Current = -0.969 / 234.812 * 233.808 = -0.965

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

Current CPI = 233.808.

Babcock & Wilcox Co Quarterly Data

 201209 201212 201303 201306 201309 201312 201403 201406 201409 201412 per share eps 0.43 0.33 0.41 0.65 0.540 1.484 0.410 0.240 0.570 -0.969 CPI 231.407 229.601 232.773 233.504 234.149 233.049 236.293 238.343 238.031 234.812 Adj_EPS 0.434 0.336 0.412 0.651 0.539 1.489 0.406 0.235 0.560 -0.965 201003 201006 201009 201012 201103 201106 201109 201112 201203 201206 per share eps 0.14 0.41 0.31 0.335 0.110 0.390 0.390 -0.229 0.500 0.650 CPI 217.631 217.965 218.439 219.179 223.467 225.722 226.889 225.672 229.392 229.478 Adj_EPS 0.15 0.44 0.332 0.357 0.115 0.404 0.402 -0.237 0.510 0.662 200903 200906 200909 200912 per share eps 0 0 0.22 0.167 CPI 212.709 215.693 215.969 215.949 Adj_EPS 0 0 0.238 0.181

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

Historical Data

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

Babcock & Wilcox Co Annual Data

 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 ShillerPE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21.81

Babcock & Wilcox Co Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 ShillerPE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21.81
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