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Coca-Cola Co (NYSE:KO)
Shiller P/E Ratio
22.21 (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 Dec. 2014 was $1.95. Coca-Cola Co's Shiller P/E Ratio for today is 22.21.

KO' s 10-Year Shiller P/E Ratio Range
Min: 16.71   Max: 36.57
Current: 22.26

16.71
36.57

During the past 13 years, Coca-Cola Co's highest Shiller P/E Ratio was 36.57. The lowest was 16.71. And the median was 22.11.

KO's Shiller P/E Ratiois ranked higher than
92% of the 161 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 66.29 vs. KO: 22.26 )

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 Dec. 2014 was $0.173. 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 $1.95 for the trailing six years ended in Dec. 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
=43.30/1.95
=22.21

* 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 Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.174/234.812*233.808
=0.173

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 233.808.

Coca-Cola Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.5000.4090.3900.5900.5400.3820.3600.5800.4800.174
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.5050.4160.3920.5910.5390.3830.3560.5690.4710.173
201003201006201009201012201103201106201109201112201203201206
per share eps 0.3450.5100.4401.2300.4100.6000.4750.3590.4450.605
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.3710.5470.4711.3120.4290.6210.4890.3720.4540.616
200903200906200909200912
per share eps 0.2900.4400.4050.329
CPI 212.709215.693215.969215.949
Adj_EPS 0.3190.4770.4380.356

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 23.9225.1728.9419.8022.8622.1121.3120.1921.6521.71

Coca-Cola Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 21.4020.1921.9221.4620.0121.6520.0521.2921.3821.71
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