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

As of today, Cal-Maine Foods Inc's current share price is $43.31. Cal-Maine Foods Inc's E10 for the quarter that ended in Feb. 2015 was $1.80. Cal-Maine Foods Inc's Shiller P/E Ratio for today is 24.06.

CALM' s 10-Year Shiller P/E Ratio Range
Min: 8.19   Max: 38.97
Current: 24.3

8.19
38.97

During the past 13 years, Cal-Maine Foods Inc's highest Shiller P/E Ratio was 38.97. The lowest was 8.19. And the median was 15.22.

CALM's Shiller P/E Ratiois ranked higher than
89% of the 2545 Companies
in the Global Packaged Foods industry.

( Industry Median: 0.00 vs. CALM: 24.30 )

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 Feb. 2015 was $1.061. 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 $1.80 for the trailing six years ended in Feb. 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.

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

Shiller P/E Ratio=Share Price/E10
=43.31/1.80
=24.06

* 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 Feb. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2015*CPI of Current
=1.05/234.722*237.167
=1.061

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

Current CPI = 237.167.

Cal-Maine Foods Inc Quarterly Data

201211201302201305201308201311201402201405201408201411201502
per share eps 0.3000.635-0.0800.1800.5400.8900.6530.5700.7601.050
CPI 230.221232.166232.945233.877233.069234.781237.900237.852236.151234.722
Adj_EPS 0.3090.649-0.0810.1830.5490.8990.6510.5680.7631.061
201005201008201011201102201105201108201111201202201205201208
per share eps 0.4400.1000.3150.7000.1520.0650.4850.5450.7790.195
CPI 218.178218.312218.803221.309225.964226.545226.230227.663229.815230.379
Adj_EPS 0.4780.1090.3410.7500.1600.0680.5080.5680.8040.201
200905200908200911201002
per share eps 0.215-0.0800.3350.725
CPI 213.856215.834216.330216.741
Adj_EPS 0.238-0.0880.3670.793

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 20.0714.9619.4516.3810.4814.0010.229.8312.0620.81

Cal-Maine Foods Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
ShillerPE 12.1910.4312.0612.4615.7215.5520.8122.8823.9320.85
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