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

As of today, Helmerich & Payne Inc's current share price is $115.17. Helmerich & Payne Inc's E10 for the quarter that ended in Mar. 2014 was $4.61. Helmerich & Payne Inc's Shiller P/E Ratio for today is 24.90.

HP' s 10-Year Shiller P/E Ratio Range
Min: 7.81   Max: 48.05
Current: 24.9

7.81
48.05

During the past 13 years, Helmerich & Payne Inc's highest Shiller P/E Ratio was 48.05. The lowest was 7.81. And the median was 19.02.

HP's Shiller P/E Ratiois ranked higher than
90% of the 247 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. HP: 24.90 )

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 $1.607. 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 $4.61 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
=115.17/4.61
=24.98

* 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*238.786
=1.607

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

Current CPI = 238.786.

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 1.3971.2281.4361.5141.5391.4262.5161.5041.6291.607
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 0.5540.5310.6520.472-0.3830.8451.0460.9721.0681.173
200806200809200812200903
per share eps 1.1801.1791.3600.980
CPI 218.815218.783210.228212.709
Adj_EPS 1.2881.2871.5451.100

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 23.7339.8621.7120.9119.0214.3413.3111.3011.8115.66

Helmerich & Payne Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 15.8214.0611.0711.8113.8614.7414.3115.6618.7723.33
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