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

As of today, Coca-Cola Enterprises Inc's current share price is $42.63. Coca-Cola Enterprises Inc's E10 for the quarter that ended in Sep. 2014 was $1.62. Coca-Cola Enterprises Inc's Shiller P/E Ratio for today is 26.31.

CCE' s 10-Year Shiller P/E Ratio Range
Min: 20.82   Max: 725.2
Current: 26.3

20.82
725.2

During the past 13 years, Coca-Cola Enterprises Inc's highest Shiller P/E Ratio was 725.20. The lowest was 20.82. And the median was 34.74.

CCE's Shiller P/E Ratiois ranked higher than
89% of the 160 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 66.38 vs. CCE: 26.30 )

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.

Coca-Cola Enterprises Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $0.949. 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 $1.62 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
=42.63/1.62
=26.31

* 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*235.189
=0.949

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

Current CPI = 235.189.

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 0.6870.9050.3500.2120.6651.0750.5220.4380.7700.949
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 0.2920.3780.6370.6570.3040.3260.7710.9120.3740.359
200812200903200906200909
per share eps -2.9900.1300.6400.590
CPI 210.228212.709215.693215.969
Adj_EPS -3.3450.1440.6980.643

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 33.0023.7163.2535.32-12.94-21.28-26.12-31.93651.88237.97

Coca-Cola Enterprises Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE -35.89-43.25651.88470.54418.37251.89237.97185.8630.7827.81
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