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

As of today, Helmerich & Payne Inc's current share price is $71.85. Helmerich & Payne Inc's E10 for the quarter that ended in Sep. 2014 was $4.72. Helmerich & Payne Inc's Shiller P/E Ratio for today is 15.22.

HP' s 10-Year Shiller P/E Ratio Range
Min: 7.82   Max: 48.05
Current: 15.2

7.82
48.05

During the past 13 years, Helmerich & Payne Inc's highest Shiller P/E Ratio was 48.05. The lowest was 7.82. And the median was 19.26.

HP's Shiller P/E Ratiois ranked higher than
91% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. HP: 15.20 )

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.

Helmerich & Payne Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $1.527. 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 $4.72 for the trailing six years ended in Sep. 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
=71.85/4.72
=15.22

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=1.543/238.031*235.51
=1.527

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

Current CPI = 235.51.

Helmerich & Payne Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.3801.4671.4801.3902.4601.4751.5901.5901.7501.543
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.4161.4931.5181.4062.4811.4841.6071.5851.7291.527
200912201003201006201009201012201103201106201109201112201203
per share eps 0.5900.430-0.3500.7730.9600.9101.0101.1151.3201.180
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.6430.465-0.3780.8331.0320.9591.0541.1571.3781.211
200812200903200906200909
per share eps 1.3600.9800.5000.480
CPI 210.228212.709215.693215.969
Adj_EPS 1.5241.0850.5460.523

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 39.7321.6620.8419.1114.2813.3711.3511.8515.7120.93

Helmerich & Payne Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 11.1211.8513.9214.6614.3615.7118.8323.3924.4620.93
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