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

As of today, Helmerich & Payne Inc's current share price is $57.65. Helmerich & Payne Inc's E10 for the quarter that ended in Jun. 2015 was $4.93. Helmerich & Payne Inc's Shiller P/E Ratio for today is 11.69.

HP' s 10-Year Shiller P/E Ratio Range
Min: 7.85   Max: 48.05
Current: 11.7

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 17.69.

HP's Shiller P/E Ratiois ranked lower than
67% of the 27 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 8.23 vs. HP: 11.70 )

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 Jun. 2015 was $0.830. 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 $4.93 for the trailing six years ended in Jun. 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.

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

Shiller P/E Ratio=Share Price/E10
=57.65/4.93
=11.69

* 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 Sep14 is calculated as:

For example, Helmerich & Payne Inc's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.83/238.638*238.662
=0.830

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

Current CPI = 238.662.

Helmerich & Payne Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 1.3902.4601.4751.5901.5901.7501.5431.8501.3700.830
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 1.4252.5141.5031.6281.6061.7521.5471.8801.3850.830
201009201012201103201106201109201112201203201206201209201212
per share eps 0.7730.9600.9101.0101.1151.3201.1801.3801.4671.480
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 0.8451.0450.9721.0681.1731.3961.2281.4351.5131.538
200909200912201003201006
per share eps 0.4800.5900.430-0.350
CPI 215.969215.949217.631217.965
Adj_EPS 0.5300.6520.472-0.383

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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ShillerPE 39.9321.7420.7719.0514.3613.3211.3111.8115.6620.49

Helmerich & Payne Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 14.7314.3015.6518.9423.3024.5020.6614.2114.0714.28
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