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Dun & Bradstreet Corp (NYSE:DNB)
Shiller P/E Ratio
20.54 (As of Today)

As of today, Dun & Bradstreet Corp's current share price is $131.86. Dun & Bradstreet Corp's E10 for the quarter that ended in Dec. 2014 was $6.42. Dun & Bradstreet Corp's Shiller P/E Ratio for today is 20.54.

DNB' s 10-Year Shiller P/E Ratio Range
Min: 11.52   Max: 33.9
Current: 20.6

11.52
33.9

During the past 13 years, Dun & Bradstreet Corp's highest Shiller P/E Ratio was 33.90. The lowest was 11.52. And the median was 17.34.

DNB's Shiller P/E Ratiois ranked higher than
91% of the 1262 Companies
in the Global Business Services industry.

( Industry Median: 0.00 vs. DNB: 20.60 )

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.

Dun & Bradstreet Corp's adjusted earnings per share data for the three months ended in Dec. 2014 was $2.526. 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 $6.42 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.

Dun & Bradstreet Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=131.86/6.42
=20.54

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

Dun & Bradstreet Corp's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Dun & Bradstreet Corp'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
=2.505/234.812*236.818
=2.526

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

Current CPI = 236.818.

Dun & Bradstreet Corp Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 1.7602.2021.2901.4401.8701.9662.2601.3501.8502.505
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 1.8012.2711.3121.4601.8911.9982.2651.3411.8412.526
201003201006201009201012201103201106201109201112201203201206
per share eps 0.9201.1001.1201.8481.0001.1801.1901.9321.3201.200
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 1.0011.1951.2141.9971.0601.2381.2422.0271.3631.238
200903200906200909200912
per share eps 1.9301.4301.0201.623
CPI 212.709215.693215.969215.949
Adj_EPS 2.1491.5701.1181.780

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.

Dun & Bradstreet Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 0.0029.5326.2219.6118.3516.5613.9313.4520.2518.86

Dun & Bradstreet Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 13.7013.4514.0416.3016.9820.2515.6117.2818.1518.86
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