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Monster Beverage Corp (NAS:MNST)
Shiller P/E Ratio
68.07 (As of Today)

As of today, Monster Beverage Corp's current share price is $111.63. Monster Beverage Corp's E10 for the quarter that ended in Sep. 2014 was $1.64. Monster Beverage Corp's Shiller P/E Ratio for today is 68.07.

MNST' s 10-Year Shiller P/E Ratio Range
Min: 17.17   Max: 208.53
Current: 68.2

17.17
208.53

During the past 13 years, Monster Beverage Corp's highest Shiller P/E Ratio was 208.53. The lowest was 17.17. And the median was 47.12.

MNST's Shiller P/E Ratiois ranked higher than
78% of the 160 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 62.84 vs. MNST: 68.20 )

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.

Monster Beverage Corp's adjusted earnings per share data for the three months ended in Sep. 2014 was $0.693. 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 $1.64 for the trailing six years ended in Sep. 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.

Monster Beverage Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=111.63/1.64
=68.07

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

Monster Beverage Corp's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Monster Beverage Corp's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.7/238.031*235.51
=0.693

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

Current CPI = 235.51.

Monster Beverage Corp Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.5900.4700.3860.3700.6200.5300.4390.5500.8100.700
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6060.4780.3960.3740.6250.5330.4440.5480.8000.693
200912201003201006201009201012201103201106201109201112201203
per share eps 0.2860.1750.3450.3600.2630.2900.4500.4400.3480.410
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.3120.1890.3730.3880.2830.3060.4700.4570.3630.421
200812200903200906200909
per share eps -0.1280.2200.3000.300
CPI 210.228212.709215.693215.969
Adj_EPS -0.1430.2440.3280.327

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.

Monster Beverage Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 54.35105.1895.2170.6443.7133.5534.6647.5544.2648.30

Monster Beverage Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 64.8146.5244.2637.9145.8738.0948.3046.8644.7955.97
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