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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.

HITK' s 10-Year Shiller P/E Ratio Range
Min: 0   Max: 0
Current: 0

HITK's Shiller P/E Ratiois ranked lower than
57% of the 950 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 146.99 vs. HITK: 0.00 )

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 $0.594. 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 $2.16 for the trailing six 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*CPI of Current
=0.59/233.916*235.51
=0.594

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

Current CPI = 235.51.

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 1.0820.8210.7480.4520.6720.440-0.3440.3330.0810.594
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 0.4930.7980.6540.7280.5440.7240.8180.8451.0151.095
200804200807200810200901
per share eps 0.0250.1300.0900.180
CPI 214.823219.964216.573211.143
Adj_EPS 0.0270.1390.0980.201

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.

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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