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Helmerich & Payne Inc (NYSE:HP)
Shiller P/E Ratio
24.80 (As of Today)

As of today, Helmerich & Payne Inc's current share price is $114.50. Helmerich & Payne Inc's E10 for the quarter that ended in Mar. 2014 was $4.62. Helmerich & Payne Inc's Shiller P/E Ratio for today is 24.80.

HP' s 10-Year Shiller P/E Ratio Range
Min: 7.85   Max: 48.05
Current: 24.8

7.85
48.05

During the past 13 years, Helmerich & Payne Inc's highest Shiller P/E Ratio was 48.05. The lowest was 7.85. And the median was 18.94.

HP's Shiller P/E Ratiois ranked higher than
91% of the 244 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. HP: 24.80 )

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.

Helmerich & Payne Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was $1.612. 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 $4.62 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.

Helmerich & Payne Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=114.50/4.62
=24.78

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

Helmerich & Payne Inc's E10 for the fiscal year that ended in Sep13 is calculated as:

For example, Helmerich & Payne Inc'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
=1.59/236.293*239.556
=1.612

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

Current CPI = 239.556.

Helmerich & Payne Inc Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 1.3201.1801.3801.4671.4801.3902.4601.4751.5901.590
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 1.4011.2321.4411.5191.5441.4312.5241.5091.6341.612
200906200909200912201003201006201009201012201103201106201109
per share eps 0.5000.4800.5900.430-0.3500.7730.9600.9101.0101.115
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.5550.5320.6540.473-0.3850.8481.0490.9761.0721.177
200806200809200812200903
per share eps 1.1801.1791.3600.980
CPI 218.815218.783210.228212.709
Adj_EPS 1.2921.2911.5501.104

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.

Helmerich & Payne Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ShillerPE 23.6540.0321.6420.8418.9814.3113.4011.3811.8915.62

Helmerich & Payne Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 15.7914.0311.0511.8913.8314.7114.4115.6218.9023.26
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