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

As of today, Li & Fung Ltd's current share price is $1.17. Li & Fung Ltd's E10 for the quarter that ended in Jun. 2014 was $0.07. Li & Fung Ltd's Shiller P/E Ratio for today is 15.65.

LFUGF' s 10-Year Shiller P/E Ratio Range
Min: 15.75   Max: 74.8
Current: 15.65

15.75
74.8

During the past 13 years, Li & Fung Ltd's highest Shiller P/E Ratio was 74.80. The lowest was 15.75. And the median was 37.10.

LFUGF's Shiller P/E Ratiois ranked higher than
89% of the 1123 Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: 40.25 vs. LFUGF: 15.65 )

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 Dec13 was $0.089. 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 $0.07 for the trailing six years ended in Dec13.


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
=1.17/0.07
=16.71

* 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. 2014 is calculated as:

For example, Li & Fung Ltd's adjusted earnings per share data for the fiscal year that ended in Dec13 was:

Adj_EPS=Earnigns per Share/CPI of Dec13*CPI of Current
=0.087/233.049*238.064
=0.089

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

Current CPI = 238.064.

Li & Fung Ltd Annual Data

200812200912201012201112201212201312
per share eps 0.0440.0580.0710.0840.0740.087
CPI 210.228215.949219.179225.672229.601233.049
Adj_EPS 0.0500.0640.0770.0890.0770.089

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.

Li & Fung Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 35.1734.3148.9751.3320.3243.9054.2829.5726.1617.75

Li & Fung Ltd Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
ShillerPE 43.900.0054.280.0029.570.0026.160.0017.750.00
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