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

As of today, McCormick & Co Inc's current share price is $90.38. McCormick & Co Inc's E10 for the quarter that ended in Aug. 2016 was $2.88. McCormick & Co Inc's Shiller P/E Ratio for today is 31.38.

MKC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.44   Max: 38.34
Current: 31.34

18.44
38.34

During the past 13 years, McCormick & Co Inc's highest Shiller P/E Ratio was 38.34. The lowest was 18.44. And the median was 27.10.

MKC's Shiller P/E Ratio is ranked lower than
58% of the 264 Companies
in the Global Packaged Foods industry.

( Industry Median: 27.61 vs. MKC: 31.34 )

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 & Co Inc's adjusted earnings per share data for the three months ended in Aug. 2016 was $1.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.88 for the trailing ten years ended in Aug. 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
=90.38/2.88
=31.38

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Aug. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Aug. 2016 (Change)*Current CPI (Aug. 2016)
=1/240.849*240.849
=1.000

Current CPI (Aug. 2016) = 240.849.

McCormick & Co Inc Quarterly Data

201405201408201411201502201505201508201511201602201605201608
per share eps 0.6400.9401.1300.5500.6500.7601.1600.7300.7301.000
CPI 237.900237.852236.151234.722237.805238.316237.336237.111240.229240.849
Adj_EPS 0.6480.9521.1520.5640.6580.7681.1770.7420.7321.000
201111201202201205201208201211201302201305201308201311201402
per share eps 0.9800.5500.6000.7801.1100.5700.5900.7800.9700.620
CPI 226.230227.663229.815230.379230.221232.166232.945233.877233.069234.781
Adj_EPS 1.0430.5820.6290.8151.1610.5910.6100.8031.0020.636
200905200908200911201002201005201008201011201102201105201108
per share eps 0.3800.5700.8800.5100.4900.7600.9900.5700.5500.690
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 0.4280.6360.9800.5670.5410.8381.0900.6200.5860.734
200611200702200705200708200711200802200805200808200811200902
per share eps 0.6200.3300.3100.4300.6600.3900.4100.5200.6200.440
CPI 201.500203.499207.949207.917210.177211.693216.632219.086212.425212.193
Adj_EPS 0.7410.3910.3590.4980.7560.4440.4560.5720.7030.499

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 local exchange's currency.

McCormick & Co Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
ShillerPE 30.1227.0519.5221.1423.7523.5428.6929.0528.9831.97

McCormick & Co Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
ShillerPE 29.2027.5528.9829.4130.0129.9231.9733.9434.7535.36
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