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Coca-Cola Co (NYSE:KO)
Shiller P/E Ratio
24.60 (As of Today)

As of today, Coca-Cola Co's current share price is $43.30. Coca-Cola Co's E10 for the quarter that ended in Sep. 2015 was $1.76. Coca-Cola Co's Shiller P/E Ratio for today is 24.60.

KO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 19.75   Max: 33.95
Current: 24.55

19.75
33.95

During the past 13 years, Coca-Cola Co's highest Shiller P/E Ratio was 33.95. The lowest was 19.75. And the median was 24.65.

KO's Shiller P/E Ratio is ranked higher than
68% of the 34 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 31.15 vs. KO: 24.55 )

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.

Coca-Cola Co's adjusted earnings per share data for the three months ended in Sep. 2015 was $0.330. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.76 for the trailing ten years ended in Sep. 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.

Coca-Cola Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=43.30/1.76
=24.60

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

Coca-Cola Co's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Coca-Cola Co's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.33/237.945*237.945
=0.330

Current CPI (Sep. 2015) = 237.945.

Coca-Cola Co Quarterly Data

201306201309201312201403201406201409201412201503201506201509
per share eps 0.5900.5400.3800.3600.5800.4800.1800.3500.7100.330
CPI 233.504234.149233.049236.293238.343238.031234.812236.119238.638237.945
Adj_EPS 0.6010.5490.3880.3630.5790.4800.1820.3530.7080.330
201012201103201106201109201112201203201206201209201212201303
per share eps 1.2350.4100.6000.4800.3600.4500.6100.5000.4100.390
CPI 219.179223.467225.722226.889225.672229.392229.478231.407229.601232.773
Adj_EPS 1.3410.4370.6320.5030.3800.4670.6330.5140.4250.399
200806200809200812200903200906200909200912201003201006201009
per share eps 0.3050.4050.2150.2900.4400.4050.3300.3450.5100.440
CPI 218.815218.783210.228212.709215.693215.969215.949217.631217.965218.439
Adj_EPS 0.3320.4400.2430.3240.4850.4460.3640.3770.5570.479
200512200603200606200609200612200703200706200709200712200803
per share eps 0.1850.2350.3900.3100.1450.2700.4000.3550.2600.320
CPI 196.800199.800202.900202.900201.800205.352208.352208.490210.036213.528
Adj_EPS 0.2240.2800.4570.3640.1710.3130.4570.4050.2950.357

Add all the adjusted EPS together and divide 10 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.

Coca-Cola Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 0.0027.4532.6223.3326.3825.5624.8623.3924.9024.70

Coca-Cola Co Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
ShillerPE 24.7323.0324.9022.9824.6824.5124.7023.5922.2522.75
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