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

As of today, KLA-Tencor Corp's current share price is $55.76. KLA-Tencor Corp's E10 for the quarter that ended in Mar. 2015 was $3.14. KLA-Tencor Corp's Shiller P/E Ratio for today is 17.76.

KLAC' s 10-Year Shiller P/E Ratio Range
Min: 8.91   Max: 51.55
Current: 17.73

8.91
51.55

During the past 13 years, KLA-Tencor Corp's highest Shiller P/E Ratio was 51.55. The lowest was 8.91. And the median was 27.91.

KLAC's Shiller P/E Ratiois ranked higher than
72% of the 251 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 30.81 vs. KLAC: 17.73 )

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 Mar. 2015 was $0.813. 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 $3.14 for the trailing six years ended in Mar. 2015.


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
=55.76/3.14
=17.76

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.81/236.119*236.959
=0.813

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

Current CPI = 236.959.

KLA-Tencor Corp Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.6300.9800.7990.6600.8301.2100.7690.4300.1200.810
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.6500.9980.8110.6680.8441.2130.7650.4280.1210.813
201006201009201012201103201106201109201112201203201206201209
per share eps 0.6580.9101.0901.2201.4291.1300.6601.2101.4540.800
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.7150.9871.1781.2941.5001.1800.6931.2501.5010.819
200906200909200912201003
per share eps -0.1500.1200.1300.330
CPI 215.693215.969215.949217.631
Adj_EPS -0.1650.1320.1430.359

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 37.7132.9332.5421.5120.8722.7624.9524.1226.2530.43

KLA-Tencor Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 23.0825.0026.2528.3529.5629.8930.4332.6224.3318.53
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