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

As of today, Coca-Cola Co's current share price is $40.50. Coca-Cola Co's E10 for the quarter that ended in Sep. 2016 was $1.82. Coca-Cola Co's Shiller P/E Ratio for today is 22.25.

KO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 19.75   Max: 33.95
Current: 22.3

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 24.47.

KO's Shiller P/E Ratio is ranked higher than
74% of the 19 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 26.48 vs. KO: 22.30 )

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. 2016 was $0.240. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.82 for the trailing ten years ended in Sep. 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
=40.50/1.82
=22.25

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=0.24/241.428*241.428
=0.240

Current CPI (Sep. 2016) = 241.428.

Coca-Cola Co Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 0.5800.4800.1800.3500.7100.3300.2800.3400.7900.240
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 0.5880.4870.1850.3580.7180.3350.2860.3450.7910.240
201112201203201206201209201212201303201306201309201312201403
per share eps 0.3600.4500.6100.5000.4100.3900.5900.5400.3800.360
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.3850.4740.6420.5220.4310.4050.6100.5570.3940.368
200906200909200912201003201006201009201012201103201106201109
per share eps 0.4400.4050.3300.3450.5100.4401.2350.4100.6000.480
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.4920.4530.3690.3830.5650.4861.3600.4430.6420.511
200612200703200706200709200712200803200806200809200812200903
per share eps 0.1450.2700.4000.3550.2600.3200.3050.4050.2150.290
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 0.1730.3170.4640.4110.2990.3620.3370.4470.2470.329

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 local exchange's currency.

Coca-Cola Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 27.4332.6323.3326.4025.3424.6823.2425.0024.7924.38

Coca-Cola Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 24.5424.6224.7923.4522.1322.8424.3826.2424.6923.21
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