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As of today, Danaher Corp's current share price is $75.61. Danaher Corp's E10 for the quarter that ended in Jun. 2014 was $3.07. Danaher Corp's Shiller P/E Ratio for today is 24.80.
During the past 13 years, Danaher Corp's highest Shiller P/E Ratio was 62.31. The lowest was 15.13. And the median was 26.73.
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.
Danaher Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.953. 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 $3.07 for the trailing six years ended in Jun. 2014.
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.
Danaher Corp's Shiller P/E Ratio for today is calculated as
|Shiller P/E Ratio||=||Share Price||/||E10|
Danaher Corp's E10 for the fiscal year that ended in Dec13 is calculated as:
For example, Danaher Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was:
|Adj_EPS||=||Earnigns per Share||/||CPI of Jun. 2014||*||CPI of Current|
Since most companies do not have as long as 10 years history, here we use 6 years to calculate:
Current CPI = 239.556.
Danaher Corp Quarterly Data
|per share eps||0.860||0.840||0.770||0.889||0.980||0.870||0.840||1.106||0.810||0.950|
|per share eps||0.530||0.394||0.450||0.550||0.950||0.689||0.630||0.940||0.740||0.802|
|per share eps||0.555||0.458||0.360||0.440|
Add all the adjusted EPS together and divide 6 will get our E10.
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.
The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a companys business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.
Danaher Corp Annual Data
Danaher Corp Quarterly Data