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

As of today, Goodyear Tire & Rubber Co's current share price is $26.29. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Dec. 2014 was $1.80. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 14.61.

GT' s 10-Year Shiller P/E Ratio Range
Min: 13.47   Max: 1594
Current: 14.63

13.47
1594

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 1594.00. The lowest was 13.47. And the median was 198.97.

GT's Shiller P/E Ratiois ranked higher than
87% of the 1427 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 40.42 vs. GT: 14.63 )

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. 2014 was $7.681. 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 $1.80 for the trailing six years ended in Dec. 2014.


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
=26.29/1.80
=14.61

* 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 Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=7.714/234.812*233.808
=7.681

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

Current CPI = 233.808.

Goodyear Tire & Rubber Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.4100.0000.1000.6700.6200.814-0.2300.7600.5807.714
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.4140.0000.1000.6710.6190.817-0.2280.7460.5707.681
201003201006201009201012201103201106201109201112201203201206
per share eps -0.1900.110-0.080-0.7310.4200.1600.6000.064-0.0500.330
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS -0.2040.118-0.086-0.7800.4390.1660.6180.066-0.0510.336
200903200906200909200912
per share eps -1.380-0.9200.3000.444
CPI 212.709215.693215.969215.949
Adj_EPS -1.517-0.9970.3250.481

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 -9.17-9.172.330.492,131.780.931.080.00119.7315.90

Goodyear Tire & Rubber Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 0.920.0027.3329.02226.01119.73577.16233.36115.6815.90
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)
Free 7-day Trial
FEEDBACK