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

As of today, Babcock & Wilcox Co's current share price is $33.08. Babcock & Wilcox Co's E10 for the quarter that ended in Mar. 2015 was $1.42. Babcock & Wilcox Co's Shiller P/E Ratio for today is 23.30.

BWC' s 10-Year Shiller P/E Ratio Range
Min: 19.39   Max: 23.69
Current: 23.4

19.39
23.69

During the past 7 years, Babcock & Wilcox Co's highest Shiller P/E Ratio was 23.69. The lowest was 19.39. And the median was 21.45.

BWC's Shiller P/E Ratiois ranked higher than
84% of the 2700 Companies
in the Global Diversified Industrials industry.

( Industry Median: 177.33 vs. BWC: 23.40 )

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 Mar. 2015 was $0.422. 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 $1.42 for the trailing six years ended in Mar. 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.

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

Shiller P/E Ratio=Share Price/E10
=33.08/1.42
=23.30

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.42/236.119*237.167
=0.422

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

Current CPI = 237.167.

Babcock & Wilcox Co Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.3300.4100.6500.5401.4840.4100.2400.570-0.9690.420
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.3410.4180.6600.5471.5100.4120.2390.568-0.9790.422
201006201009201012201103201106201109201112201203201206201209
per share eps 0.4100.3100.3350.1100.3900.390-0.2290.5000.6500.430
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.4460.3370.3620.1170.4100.408-0.2410.5170.6720.441
200906200909200912201003
per share eps 0.0000.2200.1670.140
CPI 215.693215.969215.949217.631
Adj_EPS 0.0000.2420.1830.153

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 0.000.000.000.000.000.000.000.000.0021.68

Babcock & Wilcox Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 0.000.000.000.000.000.000.000.0021.6822.54
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