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

As of today, Coca-Cola Enterprises Inc's current share price is $45.40. Coca-Cola Enterprises Inc's E10 for the quarter that ended in Dec. 2014 was $2.26. Coca-Cola Enterprises Inc's Shiller P/E Ratio for today is 20.09.

CCE' s 10-Year Shiller P/E Ratio Range
Min: 18.52   Max: 906.5
Current: 20.2

18.52
906.5

During the past 13 years, Coca-Cola Enterprises Inc's highest Shiller P/E Ratio was 906.50. The lowest was 18.52. And the median was 33.04.

CCE's Shiller P/E Ratiois ranked higher than
91% of the 193 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 0.00 vs. CCE: 20.20 )

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 Dec. 2014 was $0.459. 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 $2.26 for the trailing six years ended in Dec. 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
=45.40/2.26
=20.09

* 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 Dec14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.455/234.812*236.818
=0.459

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

Current CPI = 236.818.

Coca-Cola Enterprises Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.8900.3420.2100.6601.0700.5170.4400.7800.9600.455
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.9110.3530.2140.6691.0820.5250.4410.7750.9550.459
201003201006201009201012201103201106201109201112201203201206
per share eps 0.3500.5900.6100.2830.3100.7400.8800.3590.3500.670
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.3810.6410.6610.3060.3290.7760.9190.3770.3610.691
200903200906200909200912
per share eps 0.1300.6400.5900.268
CPI 212.709215.693215.969215.949
Adj_EPS 0.1450.7030.6470.294

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 23.7363.5235.32-12.94-21.28-26.12-31.93806.26247.6619.58

Coca-Cola Enterprises Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE -43.25806.26531.68468.69266.66247.66191.3230.6227.0419.58
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