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

As of today, M D C Holdings Inc's current share price is $27.44. M D C Holdings Inc's E10 for the quarter that ended in Dec. 2014 was $0.94. M D C Holdings Inc's Shiller P/E Ratio for today is 29.19.

MDC' s 10-Year Shiller P/E Ratio Range
Min: 6.18   Max: 1507
Current: 29.26

6.18
1507

During the past 13 years, M D C Holdings Inc's highest Shiller P/E Ratio was 1507.00. The lowest was 6.18. And the median was 14.26.

MDC's Shiller P/E Ratiois ranked higher than
90% of the 1050 Companies
in the Global Residential Construction industry.

( Industry Median: 0.00 vs. MDC: 29.26 )

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 $0.298. 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 $0.94 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
=27.44/0.94
=29.19

* 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
=0.295/234.812*236.818
=0.298

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

Current CPI = 236.818.

M D C Holdings Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.4100.6120.4504.5500.7400.5290.2300.4400.3200.295
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.4200.6310.4584.6150.7480.5380.2310.4370.3180.298
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 -0.490-0.087-0.239-0.694-0.456-0.629-0.710-0.4200.0410.227
200903200906200909200912
per share eps -0.880-0.640-0.6902.642
CPI 212.709215.693215.969215.949
Adj_EPS -0.980-0.703-0.7572.897

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 10.138.7310.0318.6138.453.492.674.170.0028.23

M D C Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 4.544.170.000.000.000.000.001,254.2546.7928.23
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