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Google Inc (NAS:GOOG)
Shiller P/E Ratio
38.70 (As of Today)

As of today, Google Inc's current share price is $536.10. Google Inc's E10 for the quarter that ended in Dec. 2013 was $0.00. Google Inc's Shiller P/E Ratio for today is 38.70.

GOOG' s 10-Year Shiller P/E Ratio Range
Min: 25.61   Max: 57.09
Current: 38.7

25.61
57.09

During the past 13 years, Google Inc's highest Shiller P/E Ratio was 57.09. The lowest was 25.61. And the median was 34.70.

GOOG's Shiller P/E Ratiois ranked higher than
54% of the 90 Companies
in the Global Internet Content & Information industry.

( Industry Median: 38.48 vs. GOOG: 38.70 )

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.

Google Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was $5.029. 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 Dec. 2013.


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.

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

Shiller P/E Ratio=Share Price/E10
=536.10/0.00
=

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

Google Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Google Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=4.955/233.049*236.511
=5.029

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Google Inc Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 4.1694.1134.3794.2143.2684.6334.9754.7754.3794.955
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 4.3464.3114.5154.3433.3404.7725.0554.8364.4235.029
200903200906200909200912201003201006201009201012201103201106
per share eps 2.2472.3322.5673.0673.0332.8583.3633.9102.7583.844
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 2.4982.5572.8113.3593.2963.1013.6414.2192.9194.028
200803200806200809200812
per share eps 2.0621.9622.0320.604
CPI 213.528218.815218.783210.228
Adj_EPS 2.2842.1212.1970.680

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.

Google Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.0057.1039.1132.9329.9840.10

Google Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 27.6132.9330.4226.3132.9529.9831.9133.6332.4440.10
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