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China Information Technology Inc (NAS:CNIT)
Shiller P/E Ratio
0.00 (As of Today)

As of today, China Information Technology Inc's current share price is $4.83. China Information Technology Inc's E10 for the quarter that ended in Dec. 2013 was $-0.53. China Information Technology Inc's Shiller P/E Ratio for today is 0.00.

CNIT' s 10-Year Shiller P/E Ratio Range
Min: 0   Max: 29.84
Current: 0

0
29.84

During the past 9 years, China Information Technology Inc's highest Shiller P/E Ratio was 29.84. The lowest was 0.00. And the median was 5.26.

CNIT's Shiller P/E Ratiois ranked lower than
52% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. CNIT: 0.00 )

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.

China Information Technology Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was $-2.546. 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 $-0.53 for the trailing six years ended in Dec. 2013.


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.

China Information Technology Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=4.83/-0.53
=

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

China Information Technology Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, China Information Technology Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=-2.48/233.049*239.229
=-2.546

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

Current CPI = 239.229.

China Information Technology Inc Quarterly Data

201103201106201109201112201203201206201209201212201306201312
per share eps 0.3100.2100.030-0.249-0.110-0.620-0.790-1.795-1.870-2.480
CPI 223.467225.722226.889225.672229.392229.478231.407229.601233.504233.049
Adj_EPS 0.3320.2230.032-0.264-0.115-0.646-0.817-1.870-1.916-2.546
200809200812200903200906200909200912201003201006201009201012
per share eps 0.3400.2100.1600.3200.4000.3380.2400.3600.4200.300
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.3720.2390.1800.3550.4430.3740.2640.3950.4600.327
200709200712200803200806
per share eps 0.1800.1320.1600.300
CPI 208.490210.036213.528218.815
Adj_EPS 0.2070.1500.1790.328

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.

China Information Technology Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.000.000.001.613.660.00

China Information Technology Inc Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Jun13Dec13
ShillerPE 0.000.000.001.611.581.472.093.6627.300.00
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