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

As of today, E I du Pont de Nemours & Company's current share price is $71.65. E I du Pont de Nemours & Company's E10 for the quarter that ended in Dec. 2014 was $3.58. E I du Pont de Nemours & Company's Shiller P/E Ratio for today is 20.01.

DD' s 10-Year Shiller P/E Ratio Range
Min: 7.12   Max: 22.49
Current: 19.8

7.12
22.49

During the past 13 years, E I du Pont de Nemours & Company's highest Shiller P/E Ratio was 22.49. The lowest was 7.12. And the median was 16.26.

DD's Shiller P/E Ratiois ranked higher than
83% of the 205 Companies
in the Global Agricultural Inputs industry.

( Industry Median: 54.30 vs. DD: 19.80 )

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 $0.734. 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 $3.58 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
=71.65/3.58
=20.01

* 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
=0.737/234.812*233.808
=0.734

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 0.0100.1073.5801.1100.3000.1871.5401.1500.4700.737
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.0100.1093.5961.1110.3000.1881.5241.1280.4620.734
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 18.1919.2318.6310.7113.1217.8214.7614.9419.4920.65

E I du Pont de Nemours & Company Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 15.6914.9414.1415.1417.1619.4919.8519.2921.1220.65
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