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KLA-Tencor Corporation (NAS:KLAC)
Shiller P/E Ratio
30.00 (As of Today)

As of today, KLA-Tencor Corporation's current share price is $66.11. KLA-Tencor Corporation's E10 for the quarter that ended in Dec. 2013 was $2.21. KLA-Tencor Corporation's Shiller P/E Ratio for today is 30.00.

KLAC' s 10-Year Shiller P/E Ratio Range
Min: 8.96   Max: 87.46
Current: 30

8.96
87.46

During the past 13 years, KLA-Tencor Corporation's highest Shiller P/E Ratio was 87.46. The lowest was 8.96. And the median was 28.87.

KLAC's Shiller P/E Ratiois ranked higher than
57% of the 277 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 29.58 vs. KLAC: 30.00 )

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 Corporation's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.842. 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 $2.21 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.

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

Shiller P/E Ratio=Share Price/E10
=66.11/2.21
=29.91

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

KLA-Tencor Corporation's E10 for the fiscal year that ended in Jun13 is calculated as:

For example, KLA-Tencor Corporation'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
=0.83/233.049*236.511
=0.842

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

Current CPI = 236.511.

KLA-Tencor Corporation Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 1.1300.6601.2101.4540.8000.6300.9800.7990.6600.830
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.1780.6921.2481.4990.8180.6490.9960.8090.6670.842
200903200906200909200912201003201006201009201012201103201106
per share eps -0.490-0.1500.1200.1300.3300.6580.9101.0901.2201.429
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS -0.545-0.1640.1310.1420.3590.7140.9851.1761.2911.497
200803200806200809200812
per share eps 0.6100.4270.110-2.570
CPI 213.528218.815218.783210.228
Adj_EPS 0.6760.4620.119-2.891

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.

KLA-Tencor Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ShillerPE 61.4537.8033.0232.6121.5520.8622.7624.9224.0826.21

KLA-Tencor Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 21.7727.1228.2624.0823.0423.0524.9626.2128.2929.23
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