Switch to:
GuruFocus has detected 4 Warning Signs with KLA-Tencor Corp $KLAC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
KLA-Tencor Corp (NAS:KLAC)
Shiller PE Ratio
32.36 (As of Today)

As of today, KLA-Tencor Corp's current share price is $90.29. KLA-Tencor Corp's E10 for the quarter that ended in Dec. 2016 was $2.79. KLA-Tencor Corp's Shiller P/E Ratio for today is 32.36.

KLAC' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.05   Max: 46.55
Current: 32.37

11.05
46.55

During the past 13 years, KLA-Tencor Corp's highest Shiller P/E Ratio was 46.55. The lowest was 11.05. And the median was 27.58.

KLAC's Shiller PE Ratio is ranked higher than
72% of the 99 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 46.55 vs. KLAC: 32.37 )

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.

KLA-Tencor Corp's adjusted earnings per share data for the three months ended in Dec. 2016 was $1.520. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.79 for the trailing ten years ended in Dec. 2016.


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.

KLA-Tencor Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=90.29/2.79
=32.36

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

KLA-Tencor Corp's E10 for the fiscal year that ended in Jun16 is calculated as:

For example, KLA-Tencor Corp's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=1.52/241.432*241.432
=1.520

Current CPI (Dec. 2016) = 241.432.

KLA-Tencor Corp Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.4300.1200.8100.8800.6600.9801.1201.7301.1301.520
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.4360.1230.8280.8900.6701.0001.1361.7331.1301.520
201203201206201209201212201303201306201309201312201403201406
per share eps 1.2101.4500.8000.6300.9800.8000.6600.8301.2100.770
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.2741.5260.8350.6621.0160.8270.6810.8601.2360.780
200909200912201003201006201009201012201103201106201109201112
per share eps 0.1200.1300.3300.6600.9101.0901.2201.4301.1300.660
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.1340.1450.3660.7311.0061.2011.3181.5301.2020.706
200703200706200709200712200803200806200809200812200903200906
per share eps 0.7600.7400.4600.4500.6100.4300.110-2.570-0.490-0.150
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 0.8940.8570.5330.5170.6900.4740.121-2.951-0.556-0.168

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

KLA-Tencor Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ShillerPE 41.4527.2422.4725.5826.0026.0225.4229.6023.3927.58

KLA-Tencor Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 32.5030.3924.8823.3920.6228.2628.7427.5825.9228.22
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK