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Coca-Cola Enterprises Inc (NYSE:CCE)
Shiller P/E Ratio
27.48 (As of Today)

As of today, Coca-Cola Enterprises Inc's current share price is $44.80. Coca-Cola Enterprises Inc's E10 for the quarter that ended in Sep. 2014 was $1.63. Coca-Cola Enterprises Inc's Shiller P/E Ratio for today is 27.48.

CCE' s 10-Year Shiller P/E Ratio Range
Min: 20.82   Max: 906.5
Current: 27.56

20.82
906.5

During the past 13 years, Coca-Cola Enterprises Inc's highest Shiller P/E Ratio was 906.50. The lowest was 20.82. And the median was 35.79.

CCE's Shiller P/E Ratiois ranked higher than
87% of the 160 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 62.84 vs. CCE: 27.56 )

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.

Coca-Cola Enterprises Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $0.950. 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 $1.63 for the trailing six years ended in Sep. 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.

Coca-Cola Enterprises Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=44.80/1.63
=27.48

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

Coca-Cola Enterprises Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Coca-Cola Enterprises Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.96/238.031*235.51
=0.950

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

Current CPI = 235.51.

Coca-Cola Enterprises Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.6700.8900.3420.2100.6601.0700.5170.4400.7800.960
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6880.9060.3510.2120.6661.0760.5220.4390.7710.950
200912201003201006201009201012201103201106201109201112201203
per share eps 0.2680.3500.5900.6100.2830.3100.7400.8800.3590.350
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.2920.3790.6370.6580.3040.3270.7720.9130.3750.359
200812200903200906200909
per share eps -2.9900.1300.6400.590
CPI 210.228212.709215.693215.969
Adj_EPS -3.3500.1440.6990.643

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.

Coca-Cola Enterprises Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 33.0323.7363.5235.32-12.94-21.28-26.12-31.93806.26247.66

Coca-Cola Enterprises Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE -35.89-43.25806.26531.68468.69266.66247.66191.3230.7127.75
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