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E I du Pont de Nemours & Company (NYSE:DD)
Shiller P/E Ratio
21.67 (As of Today)

As of today, E I du Pont de Nemours & Company's current share price is $77.80. E I du Pont de Nemours & Company's E10 for the quarter that ended in Dec. 2014 was $3.59. E I du Pont de Nemours & Company's Shiller P/E Ratio for today is 21.67.

DD' s 10-Year Shiller P/E Ratio Range
Min: 7.12   Max: 21.74
Current: 21.7

7.12
21.74

During the past 13 years, E I du Pont de Nemours & Company's highest Shiller P/E Ratio was 21.74. The lowest was 7.12. And the median was 16.19.

DD's Shiller P/E Ratiois ranked higher than
84% of the 204 Companies
in the Global Agricultural Inputs industry.

( Industry Median: 47.05 vs. DD: 21.70 )

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.

E I du Pont de Nemours & Company's adjusted earnings per share data for the three months ended in Dec. 2014 was $0.745. 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 $3.59 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.

E I du Pont de Nemours & Company's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=77.80/3.59
=21.67

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

E I du Pont de Nemours & Company's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, E I du Pont de Nemours & Company'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
=0.748/234.812*233.808
=0.745

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

Current CPI = 233.808.

E I du Pont de Nemours & Company Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.0100.1183.5801.1100.3000.1981.5401.1500.4700.748
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.0100.1203.5961.1110.3000.1991.5241.1280.4620.745
201003201006201009201012201103201106201109201112201203201206
per share eps 1.2401.2600.4000.3991.5201.2900.4800.3881.5701.250
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 1.3321.3520.4280.4261.5901.3360.4950.4021.6001.274
200903200906200909200912
per share eps 0.5400.4600.4500.484
CPI 212.709215.693215.969215.949
Adj_EPS 0.5940.4990.4870.524

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.

E I du Pont de Nemours & Company Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 18.1919.2418.6310.7213.1317.8314.7714.9319.4820.62

E I du Pont de Nemours & Company Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 15.7014.9314.1415.1417.1619.4819.8419.2821.1120.62
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