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

As of today, Novo Nordisk A/S's current share price is $53.84. Novo Nordisk A/S's E10 for the quarter that ended in Dec. 2014 was $1.15. Novo Nordisk A/S's Shiller P/E Ratio for today is 46.82.

NVO' s 10-Year Shiller P/E Ratio Range
Min: 18.94   Max: 52.14
Current: 52.12

18.94
52.14

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 52.14. The lowest was 18.94. And the median was 31.52.

NVO's Shiller P/E Ratiois ranked higher than
95% of the 1365 Companies
in the Global Biotechnology industry.

( Industry Median: 0.00 vs. NVO: 52.12 )

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. 2014 was $0.413. 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 $1.15 for the trailing six years ended in Dec. 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.

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

Shiller P/E Ratio=Share Price/E10
=53.84/1.15
=46.82

* 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 Dec14 is calculated as:

For example, Novo Nordisk A/S's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.414740435121/234.812*233.808
=0.413

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

Current CPI = 233.808.

Novo Nordisk A/S Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.3570.3710.3820.4410.4290.4170.4500.4850.4280.415
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.3610.3770.3830.4410.4280.4180.4450.4760.4200.413
201003201006201009201012201103201106201109201112201203201206
per share eps 0.2050.1980.2160.2420.2650.2780.2730.2950.2960.326
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.2200.2120.2320.2590.2780.2880.2810.3060.3010.332
200903200906200909200912
per share eps 0.1540.1850.1790.153
CPI 212.709215.693215.969215.949
Adj_EPS 0.1700.2000.1940.166

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 23.3028.1435.7623.8424.9939.0333.2036.8832.4536.70

Novo Nordisk A/S Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 38.4636.8835.4432.2632.2432.4538.1837.4040.5436.70
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