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

As of today, Cal-Maine Foods, Inc.'s current share price is $62.43. Cal-Maine Foods, Inc.'s E10 for the quarter that ended in Feb. 2014 was $3.40. Cal-Maine Foods, Inc.'s Shiller P/E Ratio for today is 18.00.

CALM' s 10-Year Shiller P/E Ratio Range
Min: 8.12   Max: 121.31
Current: 18

8.12
121.31

During the past 13 years, Cal-Maine Foods, Inc.'s highest Shiller P/E Ratio was 121.31. The lowest was 8.12. And the median was 14.78.

CALM's Shiller P/E Ratiois ranked higher than
73% of the 681 Companies
in the Global Packaged Foods industry.

( Industry Median: 20.60 vs. CALM: 18.00 )

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.

Cal-Maine Foods, Inc.'s adjusted earnings per share data for the three months ended in Feb. 2014 was $1.783. 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 $3.40 for the trailing six years ended in Feb. 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
=62.43/3.40
=18.36

* 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 May13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Feb. 2014*CPI of Current
=1.77/234.781*236.511
=1.783

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

Current CPI = 236.511.

Cal-Maine Foods, Inc. Quarterly Data

201111201202201205201208201211201302201305201308201311201402
per share eps 0.9701.0901.5570.3900.6001.270-0.1590.3601.0801.770
CPI 226.230227.663229.815230.379230.221232.166232.945233.877233.069234.781
Adj_EPS 1.0141.1321.6020.4000.6161.294-0.1610.3641.0961.783
200905200908200911201002201005201008201011201102201105201108
per share eps 0.431-0.1600.6701.4500.8800.2000.6301.4000.3040.130
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 0.477-0.1750.7331.5820.9540.2170.6811.4960.3180.136
200805200808200811200902
per share eps 1.5390.4701.1401.290
CPI 216.632219.086212.425212.193
Adj_EPS 1.6800.5071.2691.438

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

May04May05May06May07May08May09May10May11May12May13
ShillerPE 32.3720.0514.9419.4516.3910.4813.8810.229.8412.07

Cal-Maine Foods, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ShillerPE 10.6711.609.8410.8012.1910.4412.0712.4615.5815.44
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