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Goodyear Tire & Rubber Co (NAS:GT)
Shiller P/E Ratio
135.82 (As of Today)

As of today, Goodyear Tire & Rubber Co's current share price is $27.00. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Dec. 2013 was $0.20. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 135.82.

GT' s 10-Year Shiller P/E Ratio Range
Min: 26.39   Max: 1594
Current: 135.82

26.39
1594

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 1594.00. The lowest was 26.39. And the median was 197.00.

GT's Shiller P/E Ratiois ranked lower than
69% of the 515 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 20.38 vs. GT: 135.82 )

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.

Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.826. 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 $0.20 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.

Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=27.00/0.20
=135.00

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

Goodyear Tire & Rubber Co's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Goodyear Tire & Rubber Co'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
=0.814/233.049*236.511
=0.826

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

Current CPI = 236.511.

Goodyear Tire & Rubber Co Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 0.6000.064-0.0500.3300.4100.0000.1000.6700.6200.814
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.6250.067-0.0520.3400.4190.0000.1020.6790.6260.826
200903200906200909200912201003201006201009201012201103201106
per share eps -1.380-0.9200.3000.444-0.1900.110-0.080-0.7310.4200.160
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS -1.534-1.0090.3290.486-0.2060.119-0.087-0.7890.4450.168
200803200806200809200812
per share eps 0.6000.3100.130-1.369
CPI 213.528218.815218.783210.228
Adj_EPS 0.6650.3350.141-1.540

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.

Goodyear Tire & Rubber Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE -8.38-9.17-9.172.330.492,015.590.931.080.00119.98

Goodyear Tire & Rubber Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 0.771.080.850.890.920.0027.6129.06226.20119.98
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