Switch to:
GuruFocus has detected 3 Warning Signs with China Information Technology Inc \$CNIT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
China Information Technology Inc (NAS:CNIT)
Shiller PE Ratio
(As of Today)

As of today, China Information Technology Inc's current share price is \$0.72. China Information Technology Inc's E10 for the quarter that ended in Jun. 2016 was \$-0.39. China Information Technology Inc's Shiller P/E Ratio for today is .

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 of for the fiscal year that ended in Dec15 was \$-0.220. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$-0.39 for the trailing ten years ended in Dec15.

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 = 0.72 / -0.39 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

China Information Technology Inc's E10 for the quarter that ended in Jun. 2016 is calculated as:

For example, China Information Technology Inc's adjusted earnings per share data for the fiscal year that ended in Dec15 was:

 Adj_EPS = Earnigns per Share / CPI of Dec15 (Change) * Current CPI (Dec15) = -0.22 / 236.525 * 236.525 = -0.220

Current CPI (Dec15) = 236.525.

China Information Technology Inc Annual Data

 200612 200712 200812 200912 201012 201112 201212 201312 201412 201512 per share eps 0.12 0.66 1.02 1.24 1.32 0.29 -3.3 -4.4 -1 -0.2 CPI 201.8 210.036 210.228 215.949 219.179 225.672 229.601 233.049 234.812 236.525 Adj_EPS 0.141 0.743 1.148 1.358 1.424 0.304 -3.42 -4.425 -0.967 -0.22

Add all the adjusted EPS together and divide 10 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

China Information Technology Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 ShillerPE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

China Information Technology Inc Semi-Annual Data

 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 ShillerPE 0.00 1.47 0.00 27.30 0.00 0.00 0.00 0.00 0.00 0.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)