Switch to:
GuruFocus has detected 3 Warning Signs with F5 Networks Inc $FFIV.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
F5 Networks Inc (NAS:FFIV)
Shiller PE Ratio
45.56 (As of Today)

As of today, F5 Networks Inc's current share price is $144.41. F5 Networks Inc's E10 for the quarter that ended in Dec. 2016 was $3.17. F5 Networks Inc's Shiller P/E Ratio for today is 45.56.

FFIV' s Shiller PE Ratio Range Over the Past 10 Years
Min: 32.9   Max: 221.38
Current: 45.54

32.9
221.38

During the past 13 years, F5 Networks Inc's highest Shiller P/E Ratio was 221.38. The lowest was 32.90. And the median was 62.25.

FFIV's Shiller PE Ratio is ranked lower than
56% of the 292 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 38.39 vs. FFIV: 45.54 )

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.

F5 Networks Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was $1.440. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.17 for the trailing ten years ended in Dec. 2016.


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.

F5 Networks Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=144.41/3.17
=45.56

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

F5 Networks Inc's E10 for the fiscal year that ended in Sep16 is calculated as:

For example, F5 Networks Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=1.44/241.432*241.432
=1.440

Current CPI (Dec. 2016) = 241.432.

F5 Networks Inc Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 1.2501.2101.1801.2901.3601.2801.1101.3701.6301.440
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 1.2681.2441.2071.3051.3801.3071.1251.3721.6301.440
201203201206201209201212201303201306201309201312201403201406
per share eps 0.8600.9100.8500.8800.8000.8600.9600.8700.9101.050
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.9050.9570.8870.9250.8300.8890.9900.9010.9301.064
200909200912201003201006201009201012201103201106201109201112
per share eps 0.3500.3600.4100.5000.5900.6800.6800.7700.8300.830
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.3910.4020.4550.5540.6520.7490.7350.8240.8830.888
200703200706200709200712200803200806200809200812200903200906
per share eps 0.2400.2550.1450.2100.2100.2300.2400.2700.2400.290
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 0.2820.2950.1680.2410.2370.2540.2650.3100.2720.325

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 local exchange's currency.

F5 Networks Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ShillerPE 0.0075.9287.60171.5169.5174.0648.3755.0544.7740.75

F5 Networks Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 55.0558.7749.1148.6644.7736.3638.0638.9740.7545.64
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK