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

As of today, Coca-Cola Co's current share price is $44.80. Coca-Cola Co's E10 for the quarter that ended in Mar. 2016 was $1.77. Coca-Cola Co's Shiller P/E Ratio for today is 25.31.

KO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 19.75   Max: 33.95
Current: 25.34

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 24.67.

KO's Shiller P/E Ratio is ranked higher than
72% of the 18 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 33.39 vs. KO: 25.34 )

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 Mar. 2016 was $0.340. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.77 for the trailing ten years ended in Mar. 2016.


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
=44.80/1.77
=25.31

* 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 Dec15 is calculated as:

For example, Coca-Cola Co's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.34/237.208*237.208
=0.340

Current CPI (Mar. 2016) = 237.208.

Coca-Cola Co Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.3820.3600.5800.4800.1740.3500.7100.3300.2820.340
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525237.208
Adj_EPS 0.3890.3610.5770.4780.1760.3520.7060.3290.2830.340
201106201109201112201203201206201209201212201303201306201309
per share eps 0.6000.4800.3590.4500.6100.5000.4090.3900.5900.540
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.6310.5020.3770.4650.6310.5130.4230.3970.5990.547
200812200903200906200909200912201003201006201009201012201103
per share eps 0.2140.2900.4400.4050.3290.3450.5100.4401.2250.410
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.2410.3230.4840.4450.3610.3760.5550.4781.3260.435
200606200609200612200703200706200709200712200803200806200809
per share eps 0.3900.3100.1450.2700.4000.3550.2590.3200.3050.405
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.4560.3620.1700.3120.4550.4040.2930.3550.3310.439

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 27.5032.6723.3826.4325.3824.7123.2625.0024.8024.38

Coca-Cola Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 25.0022.8524.7824.6224.8023.4622.1322.8524.3826.24
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