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

As of today, Novo Nordisk A/S's current share price is $47.50. Novo Nordisk A/S's E10 for the quarter that ended in Jun. 2014 was $1.21. Novo Nordisk A/S's Shiller P/E Ratio for today is 41.07.

NVO' s 10-Year Shiller P/E Ratio Range
Min: 18.94   Max: 43.06
Current: 41.07

18.94
43.06

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 43.06. The lowest was 18.94. And the median was 29.65.

NVO's Shiller P/E Ratiois ranked higher than
96% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. NVO: 41.07 )

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.

Novo Nordisk A/S's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.482. 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 $1.21 for the trailing six years ended in Jun. 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
=47.50/1.21
=39.26

* 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 Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.48275862069/238.343*238.064
=0.482

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

Current CPI = 238.064.

Novo Nordisk A/S Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.2940.3190.3590.3850.3840.4370.4380.4140.4500.483
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.3050.3310.3700.3990.3920.4460.4450.4230.4530.482
200909200912201003201006201009201012201103201106201109201112
per share eps 0.1820.1500.2020.2070.2290.2450.2740.2760.2730.290
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.2010.1650.2210.2260.2500.2660.2920.2910.2860.306
200809200812200903200906
per share eps 0.1520.1360.1560.186
CPI 218.783210.228212.709215.693
Adj_EPS 0.1660.1540.1750.205

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 13.2212.5214.8120.1815.5318.3032.1730.2537.0832.60

Novo Nordisk A/S Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 33.5035.1135.8037.0835.6332.4332.4032.6038.3437.52
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