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

As of today, M D C Holdings Inc's current share price is $25.93. M D C Holdings Inc's E10 for the quarter that ended in Sep. 2014 was $0.56. M D C Holdings Inc's Shiller P/E Ratio for today is 46.30.

MDC' s 10-Year Shiller P/E Ratio Range
Min: 6.16   Max: 602.8
Current: 46.56

6.16
602.8

During the past 13 years, M D C Holdings Inc's highest Shiller P/E Ratio was 602.80. The lowest was 6.16. And the median was 14.14.

MDC's Shiller P/E Ratiois ranked higher than
78% of the 540 Companies
in the Global Residential Construction industry.

( Industry Median: 9999.00 vs. MDC: 46.56 )

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 Sep. 2014 was $0.317. 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 $0.56 for the trailing six years ended in Sep. 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
=25.93/0.56
=46.30

* 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 Dec13 is calculated as:

For example, M D C Holdings Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.32/238.031*235.51
=0.317

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

Current CPI = 235.51.

M D C Holdings Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.2200.4100.6120.4504.5500.7400.6300.2300.4400.320
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.2260.4170.6280.4554.5890.7440.6370.2290.4350.317
200912201003201006201009201012201103201106201109201112201203
per share eps 2.642-0.450-0.080-0.220-0.642-0.430-0.600-0.680-0.4000.040
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 2.881-0.487-0.086-0.237-0.690-0.453-0.626-0.706-0.4170.041
200812200903200906200909
per share eps -1.921-0.880-0.640-0.690
CPI 210.228212.709215.693215.969
Adj_EPS -2.152-0.974-0.699-0.752

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 14.8210.188.789.9818.5138.223.492.674.170.00

M D C Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 5.034.544.170.000.000.000.000.00668.5846.50
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