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

As of today, M D C Holdings Inc's current share price is $19.77. M D C Holdings Inc's E10 for the quarter that ended in Sep. 2015 was $-0.77. M D C Holdings Inc's Shiller P/E Ratio for today is .

During the past 13 years, M D C Holdings Inc's highest Shiller P/E Ratio was 86.36. The lowest was 8.20. And the median was 14.61.

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. 2015 was $0.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-0.77 for the trailing ten years ended in Sep. 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
=19.77/-0.77
=

* 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 Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.3/237.945*237.945
=0.300

Current CPI (Sep. 2015) = 237.945.

M D C Holdings Inc Quarterly Data

201306201309201312201403201406201409201412201503201506201509
per share eps 4.5500.7400.5290.2300.4400.3200.2990.1700.4100.300
CPI 233.504234.149233.049236.293238.343238.031234.812236.119238.638237.945
Adj_EPS 4.6370.7520.5400.2320.4390.3200.3030.1710.4090.300
201012201103201106201109201112201203201206201209201212201303
per share eps -0.642-0.430-0.600-0.680-0.4000.0400.2200.4100.6120.450
CPI 219.179223.467225.722226.889225.672229.392229.478231.407229.601232.773
Adj_EPS -0.697-0.458-0.632-0.713-0.4220.0410.2280.4220.6340.460
200806200809200812200903200906200909200912201003201006201009
per share eps -2.180-2.550-1.921-0.880-0.640-0.6902.642-0.450-0.080-0.220
CPI 218.815218.783210.228212.709215.693215.969215.949217.631217.965218.439
Adj_EPS -2.371-2.773-2.174-0.984-0.706-0.7602.911-0.492-0.087-0.240
200512200603200606200609200612200703200706200709200712200803
per share eps 4.2812.0801.6601.060-0.141-2.070-2.320-3.400-6.141-1.580
CPI 196.800199.800202.900202.900201.800205.352208.352208.490210.036213.528
Adj_EPS 5.1762.4771.9471.243-0.166-2.399-2.650-3.880-6.957-1.761

Add all the adjusted EPS together and divide 10 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 0.0012.3011.0012.2613.5115.6314.5041.7135.130.00

M D C Holdings Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
ShillerPE 27.7328.4135.1336.4451.0376.730.000.000.000.00
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