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

As of today, M D C Holdings Inc's current share price is $27.52. M D C Holdings Inc's E10 for the quarter that ended in Jun. 2015 was $1.34. M D C Holdings Inc's Shiller P/E Ratio for today is 20.54.

MDC' s 10-Year Shiller P/E Ratio Range
Min: 6.17   Max: 1507
Current: 20.62

6.17
1507

During the past 13 years, M D C Holdings Inc's highest Shiller P/E Ratio was 1507.00. The lowest was 6.17. And the median was 14.68.

MDC's Shiller P/E Ratiois ranked lower than
51% of the 220 Companies
in the Global Residential Construction industry.

( Industry Median: 20.79 vs. MDC: 20.62 )

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 Jun. 2015 was $0.410. 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 $1.34 for the trailing six years ended in Jun. 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
=27.52/1.34
=20.54

* 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 Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.41/238.638*238.662
=0.410

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

Current CPI = 238.662.

M D C Holdings Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.4504.5500.7400.5290.2300.4400.3200.2950.1700.410
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 0.4614.6510.7540.5420.2320.4410.3210.3000.1720.410
201009201012201103201106201109201112201203201206201209201212
per share eps -0.220-0.642-0.430-0.600-0.680-0.4000.0400.2200.4100.612
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS -0.240-0.699-0.459-0.634-0.715-0.4230.0420.2290.4230.636
200909200912201003201006
per share eps -0.6902.642-0.450-0.080
CPI 215.969215.949217.631217.965
Adj_EPS -0.7632.920-0.493-0.088

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 10.148.7410.0418.6438.643.492.674.170.0028.24

M D C Holdings Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 0.000.000.000.000.001,246.8446.8128.2425.0522.44
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