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

As of today, Cal-Maine Foods Inc's current share price is $77.23. Cal-Maine Foods Inc's E10 for the quarter that ended in May. 2014 was $3.38. Cal-Maine Foods Inc's Shiller P/E Ratio for today is 22.40.

CALM' s 10-Year Shiller P/E Ratio Range
Min: 8.15   Max: 121.31
Current: 22.4

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 15.05.

CALM's Shiller P/E Ratiois ranked higher than
80% of the 1586 Companies
in the Global Packaged Foods industry.

( Industry Median: 294.81 vs. CALM: 22.40 )

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 May. 2014 was $1.312. 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 $3.38 for the trailing six years ended in May. 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
=77.23/3.38
=22.85

* 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 May. 2014 was:

Adj_EPS=Earnigns per Share/CPI of May. 2014*CPI of Current
=1.305/237.9*239.229
=1.312

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

Current CPI = 239.229.

Cal-Maine Foods Inc Quarterly Data

201202201205201208201211201302201305201308201311201402201405
per share eps 1.0901.5570.3900.6001.270-0.1590.3601.0801.7701.305
CPI 227.663229.815230.379230.221232.166232.945233.877233.069234.781237.900
Adj_EPS 1.1451.6210.4050.6231.309-0.1630.3681.1091.8041.312
200908200911201002201005201008201011201102201105201108201111
per share eps -0.1600.6701.4500.8800.2000.6301.4000.3040.1300.970
CPI 215.834216.330216.741218.178218.312218.803221.309225.964226.545226.230
Adj_EPS -0.1770.7411.6000.9650.2190.6891.5130.3220.1371.026
200808200811200902200905
per share eps 0.4701.1401.2900.431
CPI 219.086212.425212.193213.856
Adj_EPS 0.5131.2841.4540.482

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 19.9814.9219.3816.3710.4613.9810.219.8312.0620.61

Cal-Maine Foods Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ShillerPE 11.589.8310.7912.1810.4312.0612.4515.7115.5520.61
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