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

As of today, KLA-Tencor Corp's current share price is $49.89. KLA-Tencor Corp's E10 for the quarter that ended in Jun. 2015 was $3.35. KLA-Tencor Corp's Shiller P/E Ratio for today is 14.89.

KLAC' s 10-Year Shiller P/E Ratio Range
Min: 8.91   Max: 51.55
Current: 14.9

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 27.78.

KLAC's Shiller P/E Ratiois ranked higher than
73% of the 253 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 26.10 vs. KLAC: 14.90 )

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 Jun. 2015 was $0.888. 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 $3.35 for the trailing six years ended in Jun. 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
=49.89/3.35
=14.89

* 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 Jun15 is calculated as:

For example, KLA-Tencor Corp's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.888/238.638*238.662
=0.888

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

Current CPI = 238.662.

KLA-Tencor Corp Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.9800.7990.6600.8301.2100.7690.4300.1200.8100.888
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 1.0050.8170.6730.8501.2220.7700.4310.1220.8190.888
201009201012201103201106201109201112201203201206201209201212
per share eps 0.9101.0901.2201.4291.1300.6601.2101.4540.8000.630
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 0.9941.1871.3031.5111.1890.6981.2591.5120.8250.655
200909200912201003201006
per share eps 0.1200.1300.3300.658
CPI 215.969215.949217.631217.965
Adj_EPS 0.1330.1440.3620.720

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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 33.0132.6121.5620.9422.6525.0024.1526.2830.4716.79

KLA-Tencor Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 25.0326.2828.3729.3129.9330.4732.3424.3618.5616.79
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