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Li & Fung Ltd (OTCPK:LFUGF)
Shiller P/E Ratio
7.86 (As of Today)

As of today, Li & Fung Ltd's current share price is $0.55. Li & Fung Ltd's E10 for the quarter that ended in Jun. 2015 was $0.07. Li & Fung Ltd's Shiller P/E Ratio for today is 7.86.

LFUGF' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 8.82   Max: 62.37
Current: 9.13

8.82
62.37

During the past 13 years, Li & Fung Ltd's highest Shiller P/E Ratio was 62.37. The lowest was 8.82. And the median was 26.15.

LFUGF's Shiller P/E Ratio is ranked higher than
89% of the 230 Companies
in the Global Business Services industry.

( Industry Median: 26.00 vs. LFUGF: 9.13 )

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.

Li & Fung Ltd's adjusted earnings per share data of for the fiscal year that ended in Dec14 was $0.053. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.07 for the trailing ten years ended in Dec14.


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.

Li & Fung Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=0.55/0.07
=7.86

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Li & Fung Ltd's E10 for the quarter that ended in Jun. 2015 is calculated as:

For example, Li & Fung Ltd's adjusted earnings per share data for the fiscal year that ended in Dec14 was:

Adj_EPS=Earnigns per Share/CPI of Dec14 (Change)*Current CPI (Dec14)
=0.053/234.812*234.812
=0.053

Current CPI (Dec14) = 234.812.

Li & Fung Ltd Annual Data

200512200612200712200812200912201012201112201212201312201412
per share eps 0.0360.0430.0570.0440.0580.0710.0840.0740.0870.053
CPI 196.800201.800210.036210.228215.949219.179225.672229.601233.049234.812
Adj_EPS 0.0430.0500.0640.0490.0630.0760.0870.0760.0880.053

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.

Li & Fung Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 0.000.000.0020.4343.6754.0529.4425.3916.6914.35

Li & Fung Ltd Semi-Annual Data

Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15
ShillerPE 54.050.0029.440.0025.390.0016.690.0014.350.00
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