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

As of today, Goodyear Tire & Rubber Co's current share price is $31.74. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Mar. 2015 was $2.23. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 14.23.

GT' s 10-Year Shiller P/E Ratio Range
Min: 11.32   Max: 1594
Current: 14.2

11.32
1594

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 1594.00. The lowest was 11.32. And the median was 166.55.

GT's Shiller P/E Ratiois ranked higher than
89% of the 1997 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 100.25 vs. GT: 14.20 )

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. 2015 was $0.824. 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 $2.23 for the trailing six years ended in Mar. 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
=31.74/2.23
=14.23

* 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 Dec14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.82/236.119*237.167
=0.824

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

Current CPI = 237.167.

Goodyear Tire & Rubber Co Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.0000.1000.6700.6200.814-0.2300.7600.5807.7140.820
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.0000.1020.6810.6280.828-0.2310.7560.5787.7910.824
201006201009201012201103201106201109201112201203201206201209
per share eps 0.110-0.080-0.7310.4200.1600.6000.064-0.0500.3300.410
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.120-0.087-0.7910.4460.1680.6270.067-0.0520.3410.420
200906200909200912201003
per share eps -0.9200.3000.444-0.190
CPI 215.693215.969215.949217.631
Adj_EPS -1.0120.3290.488-0.207

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 -9.17-9.172.330.492,652.790.931.080.00121.6315.87

Goodyear Tire & Rubber Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 0.0027.5329.20231.25121.63591.46235.17116.0715.8712.14
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