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Novo Nordisk A/S (NYSE:NVO)
Shiller P/E Ratio
41.00 (As of Today)

As of today, Novo Nordisk A/S's current share price is $43.68. Novo Nordisk A/S's E10 for the quarter that ended in Dec. 2013 was $1.06. Novo Nordisk A/S's Shiller P/E Ratio for today is 41.00.

NVO' s 10-Year Shiller P/E Ratio Range
Min: 10.58   Max: 44.31
Current: 41

10.58
44.31

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 44.31. The lowest was 10.58. And the median was 17.52.

NVO's Shiller P/E Ratiois ranked higher than
66% of the 175 Companies
in the Global Biotechnology industry.

( Industry Median: 38.74 vs. NVO: 41.00 )

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.

Novo Nordisk A/S's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.024. 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 $1.06 for the trailing six years ended in Dec. 2013.


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.

Novo Nordisk A/S's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=43.68/1.06
=41.21

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

Novo Nordisk A/S's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Novo Nordisk A/S's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.024091987589/233.049*236.511
=0.024

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Novo Nordisk A/S Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 0.2730.2900.2940.3190.3590.3850.3840.4370.4380.024
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.2840.3040.3030.3290.3670.3970.3900.4430.4420.024
200903200906200909200912201003201006201009201012201103201106
per share eps 0.1560.1860.1820.1500.2020.2070.2290.2450.2740.276
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.1740.2040.2000.1640.2200.2250.2480.2640.2900.289
200803200806200809200812
per share eps 0.1470.3170.1520.136
CPI 213.528218.815218.783210.228
Adj_EPS 0.1630.3430.1650.153

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.

Novo Nordisk A/S Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 14.0613.3414.8320.3615.5218.4532.0530.2936.7634.12

Novo Nordisk A/S Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 24.5430.2933.2434.8535.5536.7635.6632.1632.1434.12
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