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

As of today, Goodyear Tire & Rubber Co's current share price is $29.52. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Jun. 2015 was $2.55. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 11.58.

GT' s 10-Year Shiller P/E Ratio Range
Min: 11.32   Max: 691.5
Current: 11.6

11.32
691.5

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 691.50. The lowest was 11.32. And the median was 124.53.

GT's Shiller P/E Ratiois ranked higher than
68% of the 594 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 16.33 vs. GT: 11.60 )

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 Jun. 2015 was $0.700. 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 $2.55 for the trailing six years ended in Jun. 2015.


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
=29.52/2.55
=11.58

* 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 Dec14 is calculated as:

For example, Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.7/238.638*238.662
=0.700

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

Current CPI = 238.662.

Goodyear Tire & Rubber Co Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.1000.6700.6200.814-0.2300.7600.5807.7140.8200.700
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 0.1030.6850.6320.834-0.2320.7610.5827.8400.8290.700
201009201012201103201106201109201112201203201206201209201212
per share eps -0.080-0.7310.4200.1600.6000.064-0.0500.3300.4100.000
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS -0.087-0.7960.4490.1690.6310.068-0.0520.3430.4230.000
200909200912201003201006
per share eps 0.3000.444-0.1900.110
CPI 215.969215.949217.631217.965
Adj_EPS 0.3320.491-0.2080.120

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE -9.17-9.172.330.492,559.440.931.080.00120.9715.90

Goodyear Tire & Rubber Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 27.7529.18230.09120.97602.16236.96116.7415.9012.1811.84
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)

GuruFocus Premium Plus Membership

FEEDBACK