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

As of today, Novo Nordisk A/S's current share price is $55.35. Novo Nordisk A/S's E10 for the quarter that ended in Jun. 2015 was $0.00. Novo Nordisk A/S's Shiller P/E Ratio for today is .

NVO' s 10-Year Shiller P/E Ratio Range
Min: 18.94   Max: 50.95
Current: 44.96

18.94
50.95

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 50.95. The lowest was 18.94. And the median was 31.93.

NVO's Shiller P/E Ratiois ranked lower than
53% of the 112 Companies
in the Global Biotechnology industry.

( Industry Median: 44.71 vs. NVO: 44.96 )

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. 2015 was $0.486. 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 $0.00 for the trailing six years ended in Jun. 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
=55.35/0.00
=

* 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 Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.486006620524/238.638*238.666
=0.486

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

Current CPI = 238.666.

Novo Nordisk A/S Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.3820.4410.4280.4170.4500.4850.4280.4150.5500.486
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 0.3920.4500.4360.4270.4550.4860.4290.4220.5560.486
201009201012201103201106201109201112201203201206201209201212
per share eps 0.2160.2420.0000.2780.2730.2950.2960.3260.3570.371
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 0.2360.2640.0000.2940.2870.3120.3080.3390.3680.385
200909200912201003201006
per share eps 0.1790.1530.2050.198
CPI 215.969215.949217.631217.965
Adj_EPS 0.1980.1690.2240.217

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 23.1127.9235.8223.9125.0738.9233.7737.1132.3736.40

Novo Nordisk A/S Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 35.9032.3232.2332.3738.0237.2140.2836.4048.2444.68
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