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McCormick & Company Inc (NYSE:MKC)
Shiller P/E Ratio
(As of Today)

As of today, McCormick & Company Inc's current share price is $79.96. McCormick & Company Inc's E10 for the quarter that ended in May. 2015 was $0.00. McCormick & Company Inc's Shiller P/E Ratio for today is .

MKC' s 10-Year Shiller P/E Ratio Range
Min: 16.37   Max: 31.2
Current: 26.34

16.37
31.2

During the past 13 years, McCormick & Company Inc's highest Shiller P/E Ratio was 31.20. The lowest was 16.37. And the median was 23.23.

MKC's Shiller P/E Ratiois ranked lower than
58% of the 649 Companies
in the Global Packaged Foods industry.

( Industry Median: 22.22 vs. MKC: 26.34 )

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.

McCormick & Company Inc's adjusted earnings per share data for the three months ended in May. 2015 was $0.650. 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 $0.00 for the trailing six years ended in May. 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.

McCormick & Company Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=79.96/0.00
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

McCormick & Company Inc's E10 for the fiscal year that ended in Nov14 is calculated as:

For example, McCormick & Company Inc's adjusted earnings per share data for the three months ended in May. 2015 was:

Adj_EPS=Earnigns per Share/CPI of May. 2015*CPI of Current
=0.65/236.839*236.959
=0.650

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

Current CPI = 236.959.

McCormick & Company Inc Quarterly Data

201302201305201308201311201402201405201408201411201502201505
per share eps 0.5700.5900.7800.9750.6200.6400.9401.1380.5500.650
CPI 232.166232.945233.877233.069234.781237.900237.852236.151234.722236.839
Adj_EPS 0.5820.6000.7900.9910.6260.6370.9361.1420.5550.650
201008201011201102201105201108201111201202201205201208201211
per share eps 0.7600.9860.5700.5500.6900.9760.5500.6000.7801.080
CPI 218.312218.803221.309225.964226.545226.230227.663229.815230.379230.221
Adj_EPS 0.8251.0680.6100.5770.7221.0220.5720.6190.8021.112
200908200911201002201005
per share eps 0.5700.8750.5100.490
CPI 215.834216.330216.741218.178
Adj_EPS 0.6260.9580.5580.532

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.

McCormick & Company Inc Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
ShillerPE 22.1625.9223.1417.2019.3621.3821.4025.4025.4024.29

McCormick & Company Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
ShillerPE 25.9826.4524.8425.4023.6725.3823.9824.2925.2426.02
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