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

As of today, KLA-Tencor Corp's current share price is $63.34. KLA-Tencor Corp's E10 for the quarter that ended in Dec. 2014 was $2.90. KLA-Tencor Corp's Shiller P/E Ratio for today is 21.84.

KLAC' s 10-Year Shiller P/E Ratio Range
Min: 8.96   Max: 72.53
Current: 21.8

8.96
72.53

During the past 13 years, KLA-Tencor Corp's highest Shiller P/E Ratio was 72.53. The lowest was 8.96. And the median was 28.51.

KLAC's Shiller P/E Ratiois ranked higher than
94% of the 1171 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 0.00 vs. KLAC: 21.80 )

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. 2014 was $0.120. 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 $2.90 for the trailing six years ended in Dec. 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.

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

Shiller P/E Ratio=Share Price/E10
=63.34/2.90
=21.84

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

KLA-Tencor Corp's E10 for the fiscal year that ended in Jun14 is calculated as:

For example, KLA-Tencor Corp's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.12/235.51*235.189
=0.120

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

Current CPI = 235.189.

KLA-Tencor Corp Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.8000.6300.9800.7990.6600.8301.2100.7690.4300.120
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031235.510
Adj_EPS 0.8130.6450.9900.8050.6630.8381.2040.7590.4250.120
201003201006201009201012201103201106201109201112201203201206
per share eps 0.3300.6580.9101.0901.2201.4291.1300.6601.2101.454
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.3570.7100.9801.1701.2841.4891.1710.6881.2411.490
200903200906200909200912
per share eps -0.490-0.1500.1200.130
CPI 212.709215.693215.969215.949
Adj_EPS -0.542-0.1640.1310.142

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 Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ShillerPE 37.6832.8832.4721.4520.8122.7124.8924.0326.4130.59

KLA-Tencor Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 23.2123.0024.9226.4128.2429.4630.0630.5932.7924.53
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