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

As of today, Cal-Maine Foods Inc's current share price is $85.05. Cal-Maine Foods Inc's E10 for the quarter that ended in Aug. 2014 was $3.46. Cal-Maine Foods Inc's Shiller P/E Ratio for today is 24.58.

CALM' s 10-Year Shiller P/E Ratio Range
Min: 8.15   Max: 121.31
Current: 24.58

8.15
121.31

During the past 13 years, Cal-Maine Foods Inc's highest Shiller P/E Ratio was 121.31. The lowest was 8.15. And the median was 15.04.

CALM's Shiller P/E Ratiois ranked higher than
76% of the 1630 Companies
in the Global Packaged Foods industry.

( Industry Median: 47.20 vs. CALM: 24.58 )

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 Aug. 2014 was $1.136. 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 $3.46 for the trailing six years ended in Aug. 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
=85.05/3.46
=24.58

* 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 Aug. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Aug. 2014*CPI of Current
=1.14/237.852*237.056
=1.136

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 237.056.

Cal-Maine Foods Inc Quarterly Data

201205201208201211201302201305201308201311201402201405201408
per share eps 1.5570.3900.6001.270-0.1590.3601.0801.7701.3051.140
CPI 229.815230.379230.221232.166232.945233.877233.069234.781237.900237.852
Adj_EPS 1.6060.4010.6181.297-0.1620.3651.0981.7871.3001.136
200911201002201005201008201011201102201105201108201111201202
per share eps 0.6701.4500.8800.2000.6301.4000.3040.1300.9701.090
CPI 216.330216.741218.178218.312218.803221.309225.964226.545226.230227.663
Adj_EPS 0.7341.5860.9560.2170.6831.5000.3190.1361.0161.135
200811200902200905200908
per share eps 1.1401.2900.431-0.160
CPI 212.425212.193213.856215.834
Adj_EPS 1.2721.4410.478-0.176

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 20.0814.9719.4616.3810.4713.9810.219.8212.0520.80

Cal-Maine Foods Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ShillerPE 9.8210.7812.1810.4312.0512.4515.7115.5420.8022.86
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