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Goodyear Tire & Rubber Co (NAS:GT)
Shiller PE Ratio
18.84 (As of Today)

As of today, Goodyear Tire & Rubber Co's current share price is $35.99. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Dec. 2016 was $1.91. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 18.84.

GT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.59   Max: 74.64
Current: 18.66

15.59
74.64

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 74.64. The lowest was 15.59. And the median was 24.28.

GT's Shiller PE Ratio is ranked higher than
73% of the 215 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 28.18 vs. GT: 18.66 )

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. 2016 was $2.120. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.91 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.

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

Shiller P/E Ratio=Share Price/E10
=35.99/1.91
=18.84

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

Goodyear Tire & Rubber Co's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Goodyear Tire & Rubber Co'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)
=2.12/241.432*241.432
=2.120

Current CPI (Dec. 2016) = 241.432.

Goodyear Tire & Rubber Co Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.5807.6300.8200.7000.990-1.4100.6800.7501.1902.120
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.5887.8450.8380.7081.005-1.4390.6890.7511.1902.120
201203201206201209201212201303201306201309201312201403201406
per share eps -0.0500.3300.4100.0000.1000.6700.6200.850-0.2300.760
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS -0.0530.3470.4280.0000.1040.6930.6390.881-0.2350.770
200909200912201003201006201009201012201103201106201109201112
per share eps 0.3000.450-0.1900.110-0.080-0.7300.4200.1600.6000.070
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.3350.503-0.2110.122-0.088-0.8040.4540.1710.6380.075
200703200706200709200712200803200806200809200812200903200906
per share eps -0.9600.2602.7500.1900.6000.3100.130-1.370-1.380-0.920
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS -1.1290.3013.1850.2180.6780.3420.143-1.573-1.566-1.030

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.

Goodyear Tire & Rubber Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 0.000.000.000.000.000.0066.4324.2027.9716.00

Goodyear Tire & Rubber Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 45.8624.2522.0223.7222.7928.0327.4619.9122.3716.16
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