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

As of today, McCormick & Company Inc's current share price is $65.81. McCormick & Company Inc's E10 for the quarter that ended in May. 2014 was $2.85. McCormick & Company Inc's Shiller P/E Ratio for today is 23.20.

MKC' s 10-Year Shiller P/E Ratio Range
Min: 16.37   Max: 31.45
Current: 23.2

16.37
31.45

During the past 13 years, McCormick & Company Inc's highest Shiller P/E Ratio was 31.45. The lowest was 16.37. And the median was 23.49.

MKC's Shiller P/E Ratiois ranked higher than
86% of the 1582 Companies
in the Global Packaged Foods industry.

( Industry Median: 9999.00 vs. MKC: 23.20 )

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. 2014 was $0.642. 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 $2.85 for the trailing six years ended in May. 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.

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

Shiller P/E Ratio=Share Price/E10
=65.81/2.85
=23.09

* 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 Nov13 is calculated as:

For example, McCormick & Company Inc's adjusted earnings per share data for the three months ended in May. 2014 was:

Adj_EPS=Earnigns per Share/CPI of May. 2014*CPI of Current
=0.64/237.9*238.786
=0.642

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.786.

McCormick & Company Inc Quarterly Data

201202201205201208201211201302201305201308201311201402201405
per share eps 0.5500.6000.7801.0800.5700.5900.7800.9570.6200.640
CPI 227.663229.815230.379230.221232.166232.945233.877233.069234.781237.900
Adj_EPS 0.5770.6230.8081.1200.5860.6050.7960.9800.6310.642
200908200911201002201005201008201011201102201105201108201111
per share eps 0.5700.8750.5100.4900.7600.9860.5700.5500.6900.981
CPI 215.834216.330216.741218.178218.312218.803221.309225.964226.545226.230
Adj_EPS 0.6310.9660.5620.5360.8311.0760.6150.5810.7271.035
200808200811200902200905
per share eps 0.5200.6220.4400.380
CPI 219.086212.425212.193213.856
Adj_EPS 0.5670.6990.4950.424

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

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
ShillerPE 29.3222.1725.9323.1617.0719.2321.4321.4525.4525.25

McCormick & Company Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ShillerPE 21.4323.4924.8225.4526.0526.5124.9025.2523.7625.24
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide