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Marvell Technology Group Ltd (NAS:MRVL)
Shiller P/E Ratio
16.00 (As of Today)

As of today, Marvell Technology Group Ltd's current share price is $8.96. Marvell Technology Group Ltd's E10 for the quarter that ended in Apr. 2015 was $0.56. Marvell Technology Group Ltd's Shiller P/E Ratio for today is 16.00.

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.

Marvell Technology Group Ltd's adjusted earnings per share data for the three months ended in Apr. 2015 was $0.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.56 for the trailing ten years ended in Apr. 2015.


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.

Marvell Technology Group Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=8.96/0.56
=16.00

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

Marvell Technology Group Ltd's E10 for the fiscal year that ended in Jan15 is calculated as:

For example, Marvell Technology Group Ltd's adjusted earnings per share data for the three months ended in Apr. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2015 (Change)*Current CPI (Apr. 2015)
=0.03/236.599*236.599
=0.030

Current CPI (Apr. 2015) = 236.599.

Marvell Technology Group Ltd Quarterly Data

201304201307201310201401201404201407201410201501201504201510
per share eps 0.1100.1200.2100.1900.1900.2700.2200.1560.030-0.120
CPI 232.531233.596233.546233.916237.072238.250237.433233.707236.599237.838
Adj_EPS 0.1120.1220.2130.1920.1900.2680.2190.1580.030-0.119
201010201101201104201107201110201201201204201207201210201301
per share eps 0.3800.3280.2200.3100.3200.1350.1600.1600.1200.095
CPI 218.711220.223224.906225.922226.421226.665230.085229.104231.317230.280
Adj_EPS 0.4110.3520.2310.3250.3340.1410.1650.1650.1230.098
200804200807200810200901200904200907200910201001201004201007
per share eps 0.1100.1100.110-0.106-0.1800.0900.3100.3050.3000.330
CPI 214.823219.964216.573211.143213.240215.351216.177216.687218.009218.011
Adj_EPS 0.1210.1180.120-0.119-0.2000.0990.3390.3330.3260.358
200510200601200604200607200610200701200704200707200710200801
per share eps 0.1450.1510.1200.0700.010-0.239-0.090-0.100-0.0100.002
CPI 199.200198.300201.500203.500201.800202.416206.686208.299208.936211.080
Adj_EPS 0.1720.1800.1410.0810.012-0.279-0.103-0.114-0.0110.002

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.

Marvell Technology Group Ltd Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ShillerPE 0.000.000.000.000.00127.5342.2420.6729.3427.57

Marvell Technology Group Ltd Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Oct15
ShillerPE 23.3027.2624.2629.3429.9424.0023.8827.5725.090.00
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