Switch to:
M D C Holdings Inc (NYSE:MDC)
Shiller P/E Ratio
25.78 (As of Today)

As of today, M D C Holdings Inc's current share price is $24.75. M D C Holdings Inc's E10 for the quarter that ended in Dec. 2014 was $0.96. M D C Holdings Inc's Shiller P/E Ratio for today is 25.78.

MDC' s 10-Year Shiller P/E Ratio Range
Min: 6.16   Max: 753.5
Current: 25.7

6.16
753.5

During the past 13 years, M D C Holdings Inc's highest Shiller P/E Ratio was 753.50. The lowest was 6.16. And the median was 14.05.

MDC's Shiller P/E Ratiois ranked higher than
78% of the 541 Companies
in the Global Residential Construction industry.

( Industry Median: 0.00 vs. MDC: 25.70 )

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.

M D C Holdings Inc's adjusted earnings per share data for the three months ended in Dec. 2014 was $0.295. 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 $0.96 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.

M D C Holdings Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=24.75/0.96
=25.78

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

M D C Holdings Inc's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, M D C Holdings Inc'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
=0.295/235.51*235.189
=0.295

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

Current CPI = 235.189.

M D C Holdings Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.4100.6120.4504.5500.7400.6300.2300.4400.3200.295
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031235.510
Adj_EPS 0.4170.6270.4554.5830.7430.6360.2290.4340.3160.295
201003201006201009201012201103201106201109201112201203201206
per share eps -0.450-0.080-0.220-0.642-0.430-0.600-0.680-0.4000.0400.220
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS -0.486-0.086-0.237-0.689-0.453-0.625-0.705-0.4170.0410.225
200903200906200909200912
per share eps -0.880-0.640-0.6902.642
CPI 212.709215.693215.969215.949
Adj_EPS -0.973-0.698-0.7512.877

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.

M D C Holdings Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 10.198.789.9818.4838.073.492.674.170.000.00

M D C Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 4.544.170.000.000.000.000.00710.2746.720.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK