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

As of today, Babcock & Wilcox Co's current share price is $28.21. Babcock & Wilcox Co's E10 for the quarter that ended in Sep. 2014 was $0.00. Babcock & Wilcox Co's Shiller P/E Ratio for today is .

BWC' s 10-Year Shiller P/E Ratio Range
Min: 0   Max: 2.31
Current: 0

0
2.31

During the past 6 years, Babcock & Wilcox Co's highest Shiller P/E Ratio was 2.31. The lowest was 0.00. And the median was 1.33.

BWC's Shiller P/E Ratiois ranked higher than
69% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 68.79 vs. BWC: 0.00 )

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 Sep. 2014 was $0.567. 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 $0.00 for the trailing six years ended in Sep. 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
=28.21/0.00
=

* 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 Dec13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.57/238.031*236.984
=0.567

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

Current CPI = 236.984.

Babcock & Wilcox Co Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.6500.4300.3300.4100.6500.5401.4840.4100.2400.570
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6710.4400.3410.4170.6600.5471.5090.4110.2390.567
200912201003201006201009201012201103201106201109201112201203
per share eps 0.1670.1400.4100.3100.3350.1100.3900.390-0.2290.500
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.1830.1520.4460.3360.3620.1170.4090.407-0.2400.517
200812200903200906200909
per share eps 0.0000.0000.0000.220
CPI 210.228212.709215.693215.969
Adj_EPS 0.0000.0000.0000.241

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

Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.000.000.000.000.000.00

Babcock & Wilcox Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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)
Free 7-day Trial
FEEDBACK