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KKR Financial Holdings LLC (NYSE:KFN)
Shiller P/E Ratio
694.85 (As of Today)

As of today, KKR Financial Holdings LLC's current share price is $11.54. KKR Financial Holdings LLC's E10 for the quarter that ended in Dec. 2013 was $0.02. KKR Financial Holdings LLC's Shiller P/E Ratio for today is 694.85.

KFN' s 10-Year Shiller P/E Ratio Range
Min: 157.33   Max: 654
Current: 694.85

157.33
654

During the past 10 years, KKR Financial Holdings LLC's highest Shiller P/E Ratio was 654.00. The lowest was 157.33. And the median was 580.50.

KFN's Shiller P/E Ratiois ranked higher than
70% of the 1931 Companies
in the Global Specialty Finance industry.

( Industry Median: 27.85 vs. KFN: 694.85 )

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.

KKR Financial Holdings LLC's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.311. 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 $0.02 for the trailing six years ended in Dec. 2013.


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.

KKR Financial Holdings LLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=11.54/0.02
=577.00

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

KKR Financial Holdings LLC's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, KKR Financial Holdings LLC's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.304/233.049*238.21
=0.311

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

Current CPI = 238.21.

KKR Financial Holdings LLC Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.4280.4800.3900.6100.3810.4600.3900.1600.3040.490
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.4520.4980.4050.6280.3950.4710.3980.1630.3110.494
200906200909200912201003201006201009201012201103201106201109
per share eps 0.1400.4200.0130.8200.5100.5200.4790.5100.5900.220
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.1550.4630.0140.8980.5570.5670.5210.5440.6230.231
200806200809200812200903
per share eps 0.2600.330-7.849-0.090
CPI 218.815218.783210.228212.709
Adj_EPS 0.2830.359-8.894-0.101

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.

KKR Financial Holdings LLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.000.000.001,178.102,381.25733.99

KKR Financial Holdings LLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 1,178.10617.771,463.03337.902,381.250.000.00165.75733.99167.20
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