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

As of today, Goodyear Tire & Rubber Co's current share price is $32.30. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Jun. 2016 was $1.28. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 25.23.

GT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 19.98   Max: 74.64
Current: 25.19

19.98
74.64

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 74.64. The lowest was 19.98. And the median was 25.59.

GT's Shiller P/E Ratio is ranked higher than
55% of the 199 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 29.21 vs. GT: 25.19 )

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. 2016 was $0.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.28 for the trailing ten years ended in Jun. 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
=32.30/1.28
=25.23

* 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 Dec15 is calculated as:

For example, Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=0.75/241.038*241.038
=0.750

Current CPI (Jun. 2016) = 241.038.

Goodyear Tire & Rubber Co Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps -0.2300.7600.5807.6300.8200.7000.990-1.4100.6800.750
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS -0.2350.7690.5877.8320.8370.7071.003-1.4370.6880.750
201109201112201203201206201209201212201303201306201309201312
per share eps 0.6000.070-0.0500.3300.4100.0000.1000.6700.6200.850
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.6370.075-0.0530.3470.4270.0000.1040.6920.6380.879
200903200906200909200912201003201006201009201012201103201106
per share eps -1.380-0.9200.3000.450-0.1900.110-0.080-0.7300.4200.160
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS -1.564-1.0280.3350.502-0.2100.122-0.088-0.8030.4530.171
200609200612200703200706200709200712200803200806200809200812
per share eps -0.270-2.020-0.9600.2602.7500.1900.6000.3100.130-1.370
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS -0.321-2.413-1.1270.3013.1790.2180.6770.3410.143-1.571

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 own currency.

Goodyear Tire & Rubber Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.000.000.000.000.000.0065.8924.1328.18

Goodyear Tire & Rubber Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 65.3560.4145.7724.1322.1223.8322.9028.1827.5920.00
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