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

As of today, Goodyear Tire & Rubber Co's current share price is $28.30. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Mar. 2014 was $0.04. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 649.30.

GT' s 10-Year Shiller P/E Ratio Range
Min: 26.39   Max: 1594
Current: 649.3

26.39
1594

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 1594.00. The lowest was 26.39. And the median was 207.90.

GT's Shiller P/E Ratiois ranked higher than
76% of the 1272 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 9999.00 vs. GT: 649.30 )

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. 2014 was $-0.232. 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 $0.04 for the trailing six years ended in Mar. 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
=28.30/0.04
=707.50

* 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 Dec13 is calculated as:

For example, Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=-0.23/236.293*238.786
=-0.232

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.786.

Goodyear Tire & Rubber Co Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.064-0.0500.3300.4100.0000.1000.6700.6200.814-0.230
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.068-0.0520.3430.4230.0000.1030.6850.6320.834-0.232
200906200909200912201003201006201009201012201103201106201109
per share eps -0.9200.3000.444-0.1900.110-0.080-0.7310.4200.1600.600
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS -1.0180.3320.491-0.2080.121-0.087-0.7960.4490.1690.631
200806200809200812200903
per share eps 0.3100.130-1.369-1.380
CPI 218.815218.783210.228212.709
Adj_EPS 0.3380.142-1.555-1.549

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE -8.38-9.17-9.172.330.491,315.390.931.080.00120.86

Goodyear Tire & Rubber Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 1.080.850.890.920.0027.4628.91229.65120.86599.54
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