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Diageo PLC (NYSE:DEO)
Shiller P/E Ratio
19.45 (As of Today)

As of today, Diageo PLC's current share price is $103.30. Diageo PLC's E10 for the quarter that ended in Jun. 2015 was $5.31. Diageo PLC's Shiller P/E Ratio for today is 19.45.

DEO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.6   Max: 34.58
Current: 22.5

15.6
34.58

During the past 13 years, Diageo PLC's highest Shiller P/E Ratio was 34.58. The lowest was 15.60. And the median was 23.37.

DEO's Shiller P/E Ratio is ranked higher than
68% of the 53 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 27.08 vs. DEO: 22.50 )

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.

Diageo PLC's adjusted earnings per share data of for the fiscal year that ended in Jun15 was $5.894. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $5.31 for the trailing ten years ended in Jun15.


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.

Diageo PLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=103.30/5.31
=19.45

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

Diageo PLC's E10 for the quarter that ended in Jun. 2015 is calculated as:

For example, Diageo PLC's adjusted earnings per share data for the fiscal year that ended in Jun15 was:

Adj_EPS=Earnigns per Share/CPI of Jun15 (Change)*Current CPI (Jun15)
=5.89408099688/238.638*238.638
=5.894

Current CPI (Jun15) = 238.638.

Diageo PLC Annual Data

200606200706200806200906201006201106201206201306201406201506
per share eps 4.9434.3704.6294.2163.8644.9274.7156.0316.0445.894
CPI 202.900208.352218.815215.693217.965225.722229.478233.504238.343238.638
Adj_EPS 5.8135.0055.0484.6654.2315.2094.9046.1646.0515.894

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 own currency.

Diageo PLC Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 0.000.0019.7517.6720.1122.2527.4826.6824.8523.29

Diageo PLC Semi-Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 0.000.0019.7517.6720.1122.2527.4826.6824.8523.29
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