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Cal-Maine Foods Inc (NAS:CALM)
Shiller P/E Ratio
24.40 (As of Today)

As of today, Cal-Maine Foods Inc's current share price is $42.45. Cal-Maine Foods Inc's E10 for the quarter that ended in Nov. 2014 was $1.74. Cal-Maine Foods Inc's Shiller P/E Ratio for today is 24.40.

CALM' s 10-Year Shiller P/E Ratio Range
Min: 14.39   Max: 133.5
Current: 24.4

14.39
133.5

During the past 13 years, Cal-Maine Foods Inc's highest Shiller P/E Ratio was 133.50. The lowest was 14.39. And the median was 29.17.

CALM's Shiller P/E Ratiois ranked higher than
83% of the 1817 Companies
in the Global Packaged Foods industry.

( Industry Median: 54.72 vs. CALM: 24.40 )

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.

Cal-Maine Foods Inc's adjusted earnings per share data for the three months ended in Nov. 2014 was $0.758. 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 $1.74 for the trailing six years ended in Nov. 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.

Cal-Maine Foods Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=42.45/1.74
=24.40

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

Cal-Maine Foods Inc's E10 for the fiscal year that ended in May14 is calculated as:

For example, Cal-Maine Foods Inc's adjusted earnings per share data for the three months ended in Nov. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Nov. 2014*CPI of Current
=0.76/236.151*235.51
=0.758

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

Current CPI = 235.51.

Cal-Maine Foods Inc Quarterly Data

201208201211201302201305201308201311201402201405201408201411
per share eps 0.1950.3000.635-0.0800.1800.5400.8850.6530.5700.760
CPI 230.379230.221232.166232.945233.877233.069234.781237.900237.852236.151
Adj_EPS 0.1990.3070.644-0.0810.1810.5460.8880.6460.5640.758
201002201005201008201011201102201105201108201111201202201205
per share eps 0.7250.4400.1000.3150.7000.1520.0650.4850.5450.779
CPI 216.741218.178218.312218.803221.309225.964226.545226.230227.663229.815
Adj_EPS 0.7880.4750.1080.3390.7450.1580.0680.5050.5640.798
200902200905200908200911
per share eps 0.6450.215-0.0800.335
CPI 212.193213.856215.834216.330
Adj_EPS 0.7160.237-0.0870.365

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.

Cal-Maine Foods Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
ShillerPE 39.8429.6938.6532.9320.8727.8920.3519.6024.0520.76

Cal-Maine Foods Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ShillerPE 21.5124.2920.8124.0525.0831.3415.5020.7623.0424.10
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