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Fortune Brands Home & Security Inc (NYSE:FBHS)
Shiller P/E Ratio
(As of Today)

As of today, Fortune Brands Home & Security Inc's current share price is $45.08. Fortune Brands Home & Security Inc's E10 for the quarter that ended in Sep. 2014 was $0.00. Fortune Brands Home & Security Inc's Shiller P/E Ratio for today is .

FBHS' s 10-Year Shiller P/E Ratio Range
Min: 0   Max: 37.95
Current: 0

0
37.95

During the past 5 years, Fortune Brands Home & Security Inc's highest Shiller P/E Ratio was 37.95. The lowest was 0.00. And the median was 10.06.

FBHS's Shiller P/E Ratiois ranked lower than
56% of the 865 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 135.08 vs. FBHS: 0.00 )

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.

Fortune Brands Home & Security Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $-0.129. 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 $0.00 for the trailing six years ended in Sep. 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.

Fortune Brands Home & Security Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=45.08/0.00
=

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

Fortune Brands Home & Security Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Fortune Brands Home & Security Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=-0.13/238.031*235.51
=-0.129

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

Current CPI = 235.51.

Fortune Brands Home & Security Inc does not have a history long enough to calculate E10. Therefore GuruFocus does not calculate it.


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.

Fortune Brands Home & Security Inc Annual Data

Dec09Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.000.000.000.000.000.00

Fortune Brands Home & Security Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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