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

As of today, McCormick & Co Inc's current share price is $101.50. McCormick & Co Inc's E10 for the quarter that ended in May. 2016 was $2.80. McCormick & Co Inc's Shiller P/E Ratio for today is 36.25.

MKC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.44   Max: 38.2
Current: 36.2

18.44
38.2

During the past 13 years, McCormick & Co Inc's highest Shiller P/E Ratio was 38.20. The lowest was 18.44. And the median was 26.97.

MKC's Shiller P/E Ratio is ranked lower than
63% of the 258 Companies
in the Global Packaged Foods industry.

( Industry Median: 29.18 vs. MKC: 36.20 )

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 & Co Inc's adjusted earnings per share data for the three months ended in May. 2016 was $0.730. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.80 for the trailing ten years ended in May. 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
=101.50/2.80
=36.25

* 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 May. 2016 was:

Adj_EPS=Earnigns per Share/CPI of May. 2016 (Change)*Current CPI (May. 2016)
=0.73/240.236*240.236
=0.730

Current CPI (May. 2016) = 240.236.

McCormick & Co Inc Quarterly Data

201402201405201408201411201502201505201508201511201602201605
per share eps 0.6200.6400.9401.1300.5500.6500.7601.1600.7300.730
CPI 234.781237.900237.852236.151234.722237.805238.316237.336237.111240.236
Adj_EPS 0.6340.6460.9491.1500.5630.6570.7661.1740.7400.730
201108201111201202201205201208201211201302201305201308201311
per share eps 0.6900.9800.5500.6000.7801.1100.5700.5900.7800.970
CPI 226.545226.230227.663229.815230.379230.221232.166232.945233.877233.069
Adj_EPS 0.7321.0410.5800.6270.8131.1580.5900.6080.8011.000
200902200905200908200911201002201005201008201011201102201105
per share eps 0.4400.3800.5700.8800.5100.4900.7600.9900.5700.550
CPI 212.193213.856215.834216.330216.741218.178218.312218.803221.309225.964
Adj_EPS 0.4980.4270.6340.9770.5650.5400.8361.0870.6190.585
200608200611200702200705200708200711200802200805200808200811
per share eps 0.3200.6200.3300.3100.4300.6600.3900.4100.5200.620
CPI 203.900201.500203.499207.949207.917210.177211.693216.632219.086212.425
Adj_EPS 0.3770.7390.3900.3580.4970.7540.4430.4550.5700.701

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 30.0426.9719.4621.0823.6823.4828.6128.9529.1631.88

McCormick & Co Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
ShillerPE 27.2829.1027.4729.1629.3129.9129.8331.8833.8534.65
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