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Hi-Tech Pharmacal Co., Inc. (NAS:HITK)
Shiller P/E Ratio
20.13 (As of Today)

As of today, Hi-Tech Pharmacal Co., Inc.'s current share price is $43.49. Hi-Tech Pharmacal Co., Inc.'s E10 for the quarter that ended in Jan. 2014 was $2.16. Hi-Tech Pharmacal Co., Inc.'s Shiller P/E Ratio for today is 20.13.

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.

Hi-Tech Pharmacal Co., Inc.'s adjusted earnings per share data for the three months ended in Jan. 2014 was $0.590. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.16 for the trailing ten years ended in Jan. 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.

Hi-Tech Pharmacal Co., Inc.'s Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=43.49/2.16
=20.13

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Hi-Tech Pharmacal Co., Inc.'s E10 for the fiscal year that ended in Apr13 is calculated as:

For example, Hi-Tech Pharmacal Co., Inc.'s adjusted earnings per share data for the three months ended in Jan. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2014 (Change)*Current CPI (Jan. 2014)
=0.59/233.916*233.916
=0.590

Current CPI (Jan. 2014) = 233.916.

Hi-Tech Pharmacal Co., Inc. Quarterly Data

201110201201201204201207201210201301201304201307201310201401
per share eps 1.0400.7900.7310.4400.6600.430-0.3400.3300.0800.590
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 1.0740.8150.7430.4490.6670.437-0.3420.3300.0800.590
200904200907200910201001201004201007201010201101201104201107
per share eps 0.4460.7300.6000.6700.5040.6700.7600.7900.9691.050
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS 0.4890.7930.6490.7230.5410.7190.8130.8391.0081.087
200610200701200704200707200710200801200804200807200810200901
per share eps 0.0300.060-0.192-0.250-0.080-0.1400.0250.1300.0900.180
CPI 201.800202.416206.686208.299208.936211.080214.823219.964216.573211.143
Adj_EPS 0.0350.069-0.217-0.281-0.090-0.1550.0270.1380.0970.199
200404200407200410200501200504200507200510200601200604200607
per share eps 0.0810.0670.1800.2500.1470.1100.2300.3600.154-0.080
CPI 188.000189.400190.900190.700194.600195.400199.200198.300201.500203.500
Adj_EPS 0.1010.0830.2210.3070.1770.1320.2700.4250.179-0.092

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.

Hi-Tech Pharmacal Co., Inc. Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
ShillerPE 41.5037.4544.7927.5024.3218.8733.0923.6219.9217.37

Hi-Tech Pharmacal Co., Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ShillerPE 24.2425.5019.9219.9316.9919.2117.3717.9321.1920.05
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