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

As of today, KLA-Tencor Corp's current share price is $69.72. KLA-Tencor Corp's E10 for the quarter that ended in Sep. 2014 was $2.41. KLA-Tencor Corp's Shiller P/E Ratio for today is 28.93.

KLAC' s 10-Year Shiller P/E Ratio Range
Min: 8.96   Max: 87.46
Current: 28.96

8.96
87.46

During the past 13 years, KLA-Tencor Corp's highest Shiller P/E Ratio was 87.46. The lowest was 8.96. And the median was 28.78.

KLAC's Shiller P/E Ratiois ranked higher than
91% of the 1161 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 9999.00 vs. KLAC: 28.96 )

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 Sep. 2014 was $0.425. 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 $2.41 for the trailing six years ended in Sep. 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
=69.72/2.41
=28.93

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.43/238.031*235.51
=0.425

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

Current CPI = 235.51.

KLA-Tencor Corp Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.4540.8000.6300.9800.7990.6600.8301.2100.7690.430
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.4920.8140.6460.9920.8060.6640.8391.2060.7600.425
200912201003201006201009201012201103201106201109201112201203
per share eps 0.1300.3300.6580.9101.0901.2201.4291.1300.6601.210
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.1420.3570.7110.9811.1711.2861.4911.1730.6891.242
200812200903200906200909
per share eps -2.570-0.490-0.1500.120
CPI 210.228212.709215.693215.969
Adj_EPS -2.879-0.543-0.1640.131

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 37.6732.9132.4721.6520.8022.7024.8824.2326.3630.53

KLA-Tencor Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 24.2323.1723.1824.8726.3628.4629.3929.9930.5332.73
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