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Legg Mason Inc (NYSE:LM)
Shiller P/E Ratio
0.00 (As of Today)

As of today, Legg Mason Inc's current share price is $50.62. Legg Mason Inc's E10 for the quarter that ended in Jun. 2014 was $-1.74. Legg Mason Inc's Shiller P/E Ratio for today is 0.00.

LM' s 10-Year Shiller P/E Ratio Range
Min: 3.54   Max: 51.02
Current: 0

3.54
51.02

During the past 13 years, Legg Mason Inc's highest Shiller P/E Ratio was 51.02. The lowest was 3.54. And the median was 27.02.

LM's Shiller P/E Ratiois ranked lower than
161% of the 716 Companies
in the Global Asset Management industry.

( Industry Median: 19.43 vs. LM: 0.00 )

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.

Legg Mason Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.609. 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 $-1.74 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.

Legg Mason Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=50.62/-1.74
=

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

Legg Mason Inc's E10 for the fiscal year that ended in Mar14 is calculated as:

For example, Legg Mason Inc'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
=0.61/238.343*238.064
=0.609

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

Current CPI = 238.064.

Legg Mason Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.543-0.0700.600-3.4500.2270.3800.7000.6700.5750.610
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.564-0.0730.617-3.5770.2320.3870.7120.6840.5790.609
200909200912201003201006201009201012201103201106201109201112
per share eps 0.3000.2800.3960.3000.5000.4100.4320.4000.3900.200
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.3310.3090.4330.3280.5450.4450.4600.4220.4090.211
200809200812200903200906
per share eps -0.770-10.590-2.3470.350
CPI 218.783210.228212.709215.693
Adj_EPS -0.838-11.992-2.6270.386

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.

Legg Mason Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ShillerPE 35.1235.9123.7713.2110.5123.1342.536.270.000.00

Legg Mason Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 6.275.945.580.000.000.000.000.000.000.00
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