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Cisco Systems Inc (NAS:CSCO)
Shiller P/E Ratio
18.84 (As of Today)

As of today, Cisco Systems Inc's current share price is $29.95. Cisco Systems Inc's E10 for the quarter that ended in Oct. 2016 was $1.59. Cisco Systems Inc's Shiller P/E Ratio for today is 18.84.

CSCO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 13.88   Max: 58.12
Current: 18.61

13.88
58.12

During the past 13 years, Cisco Systems Inc's highest Shiller P/E Ratio was 58.12. The lowest was 13.88. And the median was 19.61.

CSCO's Shiller P/E Ratio is ranked higher than
65% of the 98 Companies
in the Global Communication Equipment industry.

( Industry Median: 31.53 vs. CSCO: 18.61 )

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.

Cisco Systems Inc's adjusted earnings per share data for the three months ended in Oct. 2016 was $0.460. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.59 for the trailing ten years ended in Oct. 2016.


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.

Cisco Systems Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=29.95/1.59
=18.84

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

Cisco Systems Inc's E10 for the fiscal year that ended in Jul15 is calculated as:

For example, Cisco Systems Inc's adjusted earnings per share data for the three months ended in Oct. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2016 (Change)*Current CPI (Oct. 2016)
=0.46/241.729*241.729
=0.460

Current CPI (Oct. 2016) = 241.729.

Cisco Systems Inc Quarterly Data

201407201410201501201504201507201510201601201604201607201610
per share eps 0.4300.3500.4600.4700.4600.4800.6200.4600.5500.460
CPI 238.250237.433233.707236.599238.654237.838236.916239.261240.628241.729
Adj_EPS 0.4360.3560.4760.4800.4660.4880.6330.4650.5530.460
201201201204201207201210201301201304201307201310201401201404
per share eps 0.4000.4000.3600.3900.5900.4600.4200.3700.2700.420
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.4270.4200.3800.4080.6190.4780.4350.3830.2790.428
200907200910201001201004201007201010201101201104201107201110
per share eps 0.1900.3000.3200.3700.3400.3400.2700.3300.2200.330
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.2130.3350.3570.4100.3770.3760.2960.3550.2350.352
200701200704200707200710200801200804200807200810200901200904
per share eps 0.3100.3000.3100.3500.3300.2900.3400.3700.2600.230
CPI 202.416206.686208.299208.936211.080214.823219.964216.573211.143213.240
Adj_EPS 0.3700.3510.3600.4050.3780.3260.3740.4130.2980.261

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

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 local exchange's currency.

Cisco Systems Inc Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
ShillerPE 51.1431.1228.8326.8215.8714.0820.0218.3419.5119.35

Cisco Systems Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ShillerPE 18.3417.6818.9620.2119.5119.6715.8317.8819.3519.26
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