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

As of today, M D C Holdings Inc's current share price is $28.35. M D C Holdings Inc's E10 for the quarter that ended in Mar. 2015 was $1.15. M D C Holdings Inc's Shiller P/E Ratio for today is 24.65.

MDC' s 10-Year Shiller P/E Ratio Range
Min: 6.16   Max: 1004.67
Current: 24.8

6.16
1004.67

During the past 13 years, M D C Holdings Inc's highest Shiller P/E Ratio was 1004.67. The lowest was 6.16. And the median was 14.23.

MDC's Shiller P/E Ratiois ranked higher than
80% of the 662 Companies
in the Global Residential Construction industry.

( Industry Median: 0.00 vs. MDC: 24.80 )

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 Mar. 2015 was $0.171. 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 $1.15 for the trailing six years ended in Mar. 2015.


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
=28.35/1.15
=24.65

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.17/236.119*237.167
=0.171

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

Current CPI = 237.167.

M D C Holdings Inc Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.6120.4504.5500.7400.5290.2300.4400.3200.2950.170
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.6320.4584.6210.7500.5380.2310.4380.3190.2980.171
201006201009201012201103201106201109201112201203201206201209
per share eps -0.080-0.220-0.642-0.430-0.600-0.680-0.4000.0400.2200.410
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS -0.087-0.239-0.695-0.456-0.630-0.711-0.4200.0410.2270.420
200906200909200912201003
per share eps -0.640-0.6902.642-0.450
CPI 215.693215.969215.949217.631
Adj_EPS -0.704-0.7582.902-0.490

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 10.198.799.9818.4437.903.492.674.170.0028.05

M D C Holdings Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 4.170.000.000.000.000.001,035.2646.7528.0524.88
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