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

As of today, Novo Nordisk A/S's current share price is $55.85. Novo Nordisk A/S's E10 for the quarter that ended in Dec. 2015 was $0.96. Novo Nordisk A/S's Shiller P/E Ratio for today is 58.18.

NVO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 22.8   Max: 67.58
Current: 54.69

22.8
67.58

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 67.58. The lowest was 22.80. And the median was 42.58.

NVO's Shiller P/E Ratio is ranked lower than
51% of the 51 Companies
in the Global Biotechnology industry.

( Industry Median: 54.60 vs. NVO: 54.69 )

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. 2015 was $0.472. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.96 for the trailing ten years ended in Dec. 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.

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

Shiller P/E Ratio=Share Price/E10
=55.85/0.96
=58.18

* 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 Dec15 is calculated as:

For example, Novo Nordisk A/S's adjusted earnings per share data for the three months ended in Dec. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=0.472493798336/236.525*236.525
=0.472

Current CPI (Dec. 2015) = 236.525.

Novo Nordisk A/S Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 0.4280.4170.4500.4850.4280.4150.5500.4860.4910.472
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 0.4330.4230.4510.4810.4250.4180.5510.4820.4880.472
201103201106201109201112201203201206201209201212201303201306
per share eps 0.0000.2780.2730.2950.2960.3260.3570.3710.3820.441
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 0.0000.2920.2840.3090.3050.3360.3650.3820.3880.446
200809200812200903200906200909200912201003201006201009201012
per share eps 0.1650.1370.1540.1850.1790.1530.2050.1980.2160.242
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.1790.1540.1720.2030.1960.1680.2220.2150.2340.262
200603200606200609200612200703200706200709200712200803200806
per share eps 0.0600.0910.0940.0940.0950.2060.1280.0610.1450.313
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 0.0710.1060.1100.1100.1100.2340.1450.0690.1600.339

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.

Novo Nordisk A/S Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 35.2342.1628.6529.7047.8643.5849.0743.7247.9760.20

Novo Nordisk A/S Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 42.4743.7250.9349.4253.4347.9763.8959.3056.3660.20
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