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IAC/InterActiveCorp (NAS:IACI)
Shiller P/E Ratio
53.47 (As of Today)

As of today, IAC/InterActiveCorp's current share price is $61.49. IAC/InterActiveCorp's E10 for the quarter that ended in Sep. 2014 was $1.15. IAC/InterActiveCorp's Shiller P/E Ratio for today is 53.47.

IACI' s 10-Year Shiller P/E Ratio Range
Min: 2.9   Max: 7753
Current: 53.4

2.9
7753

During the past 13 years, IAC/InterActiveCorp's highest Shiller P/E Ratio was 7753.00. The lowest was 2.90. And the median was 6.47.

IACI's Shiller P/E Ratiois ranked higher than
88% of the 525 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. IACI: 53.40 )

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.

IAC/InterActiveCorp's adjusted earnings per share data for the three months ended in Sep. 2014 was $3.641. 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 $1.15 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.

IAC/InterActiveCorp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=61.49/1.15
=53.47

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

IAC/InterActiveCorp's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, IAC/InterActiveCorp'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
=3.68/238.031*235.51
=3.641

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

Current CPI = 235.51.

IAC/InterActiveCorp Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.4700.4300.4330.6100.6701.1300.9270.410-0.2203.680
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.4820.4380.4440.6170.6761.1370.9370.409-0.2173.641
200912201003201006201009201012201103201106201109201112201203
per share eps -6.489-0.1600.1200.1600.9030.1900.4400.6900.5850.380
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -7.077-0.1730.1300.1730.9700.2000.4590.7160.6110.390
200812200903200906200909
per share eps 1.460-0.1900.2800.160
CPI 210.228212.709215.693215.969
Adj_EPS 1.636-0.2100.3060.174

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.

IAC/InterActiveCorp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 7.635.446.074.5816.472.34288.696.180.005,343.25

IAC/InterActiveCorp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 6.557.480.000.000.000.005,343.256,131.41132.0757.19
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