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

As of today, Babcock & Wilcox Co's current share price is $32.14. Babcock & Wilcox Co's E10 for the quarter that ended in Dec. 2014 was $1.40. Babcock & Wilcox Co's Shiller P/E Ratio for today is 22.96.

BWC' s 10-Year Shiller P/E Ratio Range
Min: 19.39   Max: 23
Current: 22.9

19.39
23

During the past 7 years, Babcock & Wilcox Co's highest Shiller P/E Ratio was 23.00. The lowest was 19.39. And the median was 21.41.

BWC's Shiller P/E Ratiois ranked higher than
84% of the 2662 Companies
in the Global Diversified Industrials industry.

( Industry Median: 746.45 vs. BWC: 22.90 )

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 $-0.972. 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 $1.40 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
=32.14/1.40
=22.96

* 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*235.483
=-0.972

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

Current CPI = 235.483.

Babcock & Wilcox Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.4300.3300.4100.6500.5401.4840.4100.2400.570-0.969
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.4380.3380.4150.6560.5431.4990.4090.2370.564-0.972
201003201006201009201012201103201106201109201112201203201206
per share eps 0.1400.4100.3100.3350.1100.3900.390-0.2290.5000.650
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.1510.4430.3340.3600.1160.4070.405-0.2390.5130.667
200903200906200909200912
per share eps 0.0000.0000.2200.167
CPI 212.709215.693215.969215.949
Adj_EPS 0.0000.0000.2400.182

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.

Babcock & Wilcox Co Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 0.000.000.000.000.000.000.000.000.0021.59

Babcock & Wilcox Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 0.000.000.000.000.000.000.000.000.0021.59
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