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

As of today, Coca-Cola Co's current share price is $41.19. Coca-Cola Co's E10 for the quarter that ended in Mar. 2014 was $1.94. Coca-Cola Co's Shiller P/E Ratio for today is 21.40.

KO' s 10-Year Shiller P/E Ratio Range
Min: 16.71   Max: 37.06
Current: 21.4

16.71
37.06

During the past 13 years, Coca-Cola Co's highest Shiller P/E Ratio was 37.06. The lowest was 16.71. And the median was 22.49.

KO's Shiller P/E Ratiois ranked higher than
91% of the 123 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 188.62 vs. KO: 21.40 )

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. 2014 was $0.365. 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 $1.94 for the trailing six years ended in Mar. 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.

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

Shiller P/E Ratio=Share Price/E10
=41.19/1.94
=21.23

* 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 Dec13 is calculated as:

For example, Coca-Cola Co's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.36/236.293*239.556
=0.365

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 239.556.

Coca-Cola Co Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.3590.4500.6100.5000.4090.3900.5900.5400.3820.360
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.3810.4700.6370.5180.4270.4010.6050.5520.3930.365
200906200909200912201003201006201009201012201103201106201109
per share eps 0.4400.4050.3290.3450.5100.4401.2250.4100.6000.480
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.4890.4490.3650.3800.5610.4831.3390.4400.6370.507
200806200809200812200903
per share eps 0.3050.4050.2140.290
CPI 218.815218.783210.228212.709
Adj_EPS 0.3340.4430.2440.327

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.

Coca-Cola Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 28.0123.9425.1929.0019.8522.9221.9921.2120.0921.76

Coca-Cola Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 21.2121.6322.4821.5120.0922.0321.5719.9321.7619.96
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