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

As of today, McCormick & Co Inc's current share price is $102.02. McCormick & Co Inc's E10 for the quarter that ended in Feb. 2016 was $2.78. McCormick & Co Inc's Shiller P/E Ratio for today is 36.70.

MKC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.32   Max: 36.74
Current: 36.74

18.32
36.74

During the past 13 years, McCormick & Co Inc's highest Shiller P/E Ratio was 36.74. The lowest was 18.32. And the median was 27.05.

MKC's Shiller P/E Ratio is ranked lower than
64% of the 251 Companies
in the Global Packaged Foods industry.

( Industry Median: 27.29 vs. MKC: 36.74 )

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 & Co Inc's adjusted earnings per share data for the three months ended in Feb. 2016 was $0.730. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.78 for the trailing ten years ended in Feb. 2016.


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

Shiller P/E Ratio=Share Price/E10
=102.02/2.78
=36.70

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

McCormick & Co Inc's E10 for the fiscal year that ended in Nov15 is calculated as:

For example, McCormick & Co Inc's adjusted earnings per share data for the three months ended in Feb. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2016 (Change)*Current CPI (Feb. 2016)
=0.73/237.111*237.111
=0.730

Current CPI (Feb. 2016) = 237.111.

McCormick & Co Inc Quarterly Data

201311201402201405201408201411201502201505201508201511201602
per share eps 0.9850.6200.6400.9401.1410.5500.6500.7601.1550.730
CPI 233.069234.781237.900237.852236.151234.722237.805238.316237.336237.111
Adj_EPS 1.0020.6260.6380.9371.1460.5560.6480.7561.1540.730
201105201108201111201202201205201208201211201302201305201308
per share eps 0.5500.6900.9700.5500.6000.7801.0940.5700.5900.780
CPI 225.964226.545226.230227.663229.815230.379230.221232.166232.945233.877
Adj_EPS 0.5770.7221.0170.5730.6190.8031.1270.5820.6010.791
200811200902200905200908200911201002201005201008201011201102
per share eps 0.6220.4400.3800.5700.8750.5100.4900.7600.9860.570
CPI 212.425212.193213.856215.834216.330216.741218.178218.312218.803221.309
Adj_EPS 0.6940.4920.4210.6260.9590.5580.5330.8251.0690.611
200605200608200611200702200705200708200711200802200805200808
per share eps 0.4600.3200.6220.3300.3100.4300.6630.3900.4100.520
CPI 202.500203.900201.500203.499207.949207.917210.177211.693216.632219.086
Adj_EPS 0.5390.3720.7320.3850.3530.4900.7480.4370.4490.563

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.

McCormick & Co Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
ShillerPE 30.0126.9619.4521.0823.6923.4928.6428.9929.2031.92

McCormick & Co Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
ShillerPE 28.9927.3129.1327.5029.2029.3429.9529.8631.9233.57
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