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

As of today, Coca-Cola Co's current share price is $39.32. Coca-Cola Co's E10 for the quarter that ended in Jun. 2014 was $1.99. Coca-Cola Co's Shiller P/E Ratio for today is 19.70.

KO' s 10-Year Shiller P/E Ratio Range
Min: 16.71   Max: 37.06
Current: 19.7

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 22.65.

KO's Shiller P/E Ratiois ranked higher than
92% of the 123 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 190.31 vs. KO: 19.70 )

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 Jun. 2014 was $0.581. 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 $1.99 for the trailing six years ended in Jun. 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
=39.32/1.99
=19.76

* 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 Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.58/238.343*238.786
=0.581

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

Current CPI = 238.786.

Coca-Cola Co Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.4500.6100.5000.4090.3900.5900.5400.3820.3600.580
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.4680.6350.5160.4250.4000.6030.5510.3910.3640.581
200909200912201003201006201009201012201103201106201109201112
per share eps 0.4050.3290.3450.5100.4401.2250.4100.6000.4800.359
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.4480.3640.3790.5590.4811.3350.4380.6350.5050.380
200809200812200903200906
per share eps 0.4050.2140.2900.440
CPI 218.783210.228212.709215.693
Adj_EPS 0.4420.2430.3260.487

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 27.8623.8025.0329.0619.8922.9622.0321.2420.1321.60

Coca-Cola Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 21.6622.5221.3420.1322.0621.4019.9721.6020.0121.17
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