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

As of today, Goodyear Tire & Rubber Co's current share price is $27.89. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Mar. 2016 was $1.20. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 23.24.

GT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 20.35   Max: 81.42
Current: 23.29

20.35
81.42

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 81.42. The lowest was 20.35. And the median was 26.90.

GT's Shiller P/E Ratio is ranked higher than
55% of the 191 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 27.22 vs. GT: 23.29 )

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 Mar. 2016 was $0.680. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.20 for the trailing ten years ended in Mar. 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
=27.89/1.20
=23.24

* 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 Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.68/238.132*238.132
=0.680

Current CPI (Mar. 2016) = 238.132.

Goodyear Tire & Rubber Co Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.814-0.2300.7600.5807.7140.8200.7000.990-1.4290.680
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.832-0.2320.7590.5807.8230.8270.6990.991-1.4390.680
201106201109201112201203201206201209201212201303201306201309
per share eps 0.1600.6000.064-0.0500.3300.4100.0000.1000.6700.620
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.1690.6300.068-0.0520.3420.4220.0000.1020.6830.631
200812200903200906200909200912201003201006201009201012201103
per share eps -1.369-1.380-0.9200.3000.444-0.1900.110-0.080-0.7310.420
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS -1.551-1.545-1.0160.3310.490-0.2080.120-0.087-0.7940.448
200606200609200612200703200706200709200712200803200806200809
per share eps 0.010-0.270-2.023-0.9600.2602.7500.2160.6000.3100.130
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.012-0.317-2.387-1.1130.2973.1410.2450.6690.3370.141

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 0.000.000.000.000.000.000.0071.3424.0627.84

Goodyear Tire & Rubber Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 71.3469.4964.2848.4824.0621.8523.5422.8427.8427.53
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