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

As of today, Novo Nordisk A/S's current share price is $51.06. Novo Nordisk A/S's E10 for the quarter that ended in Mar. 2016 was $1.07. Novo Nordisk A/S's Shiller P/E Ratio for today is 47.72.

NVO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 22.8   Max: 68.04
Current: 47.68

22.8
68.04

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 68.04. The lowest was 22.80. And the median was 43.02.

NVO's Shiller P/E Ratio is ranked higher than
54% of the 54 Companies
in the Global Biotechnology industry.

( Industry Median: 54.39 vs. NVO: 47.68 )

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 Mar. 2016 was $0.554. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.07 for the trailing ten years ended in Mar. 2016.


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
=51.06/1.07
=47.72

* 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 Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.553847072523/238.132*238.132
=0.554

Current CPI (Mar. 2016) = 238.132.

Novo Nordisk A/S Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.4170.4500.4850.4280.4150.5500.4860.4910.4720.554
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.4260.4540.4840.4280.4210.5540.4850.4910.4760.554
201106201109201112201203201206201209201212201303201306201309
per share eps 0.2780.2730.2950.2960.3260.3570.3710.3820.4410.428
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.2940.2860.3120.3070.3390.3670.3840.3910.4490.436
200812200903200906200909200912201003201006201009201012201103
per share eps 0.1370.1540.1850.1790.1530.2050.1980.2160.2420.265
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.1550.1730.2040.1980.1690.2240.2160.2360.2630.283
200606200609200612200703200706200709200712200803200806200809
per share eps 0.0910.0940.0940.0950.2060.1280.0610.1450.3130.165
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.1070.1100.1100.1100.2350.1460.0690.1620.3410.180

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 35.1542.1028.5829.6548.2142.5948.7543.3147.7560.75

Novo Nordisk A/S Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 43.3151.0149.0953.1447.7564.3159.7456.2860.7550.45
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