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National Grid PLC (NYSE:NGG)
Shiller P/E Ratio
13.59 (As of Today)

As of today, National Grid PLC's current share price is $72.01. National Grid PLC's E10 for the quarter that ended in Sep. 2015 was $5.30. National Grid PLC's Shiller P/E Ratio for today is 13.59.

NGG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 8.07   Max: 14.1
Current: 14.07

8.07
14.1

During the past 13 years, National Grid PLC's highest Shiller P/E Ratio was 14.10. The lowest was 8.07. And the median was 11.51.

NGG's Shiller P/E Ratio is ranked higher than
83% of the 203 Companies
in the Global Utilities - Diversified industry.

( Industry Median: 23.36 vs. NGG: 14.07 )

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.

National Grid PLC's adjusted earnings per share data of for the fiscal year that ended in Mar15 was $3.991. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $5.30 for the trailing ten years ended in Mar15.


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.

National Grid PLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=72.01/5.30
=13.59

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

National Grid PLC's E10 for the quarter that ended in Sep. 2015 is calculated as:

For example, National Grid PLC's adjusted earnings per share data for the fiscal year that ended in Mar15 was:

Adj_EPS=Earnigns per Share/CPI of Mar15 (Change)*Current CPI (Mar15)
=3.99103139013/236.119*236.119
=3.991

Current CPI (Mar15) = 236.119.

National Grid PLC Annual Data

200603200703200803200903201003201103201203201303201403201503
per share eps 10.4424.38910.7782.3603.6305.0484.3834.3365.4323.991
CPI 199.800205.352213.528212.709217.631223.467229.392232.773236.293236.119
Adj_EPS 12.3405.04711.9182.6193.9385.3344.5114.3995.4283.991

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.

National Grid PLC Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ShillerPE 0.000.0010.008.5110.7411.6410.4211.6911.9512.27

National Grid PLC Semi-Annual Data

Mar11Sep11Mar12Sep12Mar13Sep13Mar14Sep14Mar15Sep15
ShillerPE 11.640.0010.420.0011.690.0011.950.0012.270.00
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