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

As of today, Novo Nordisk A/S's current share price is $46.89. Novo Nordisk A/S's E10 for the quarter that ended in Jun. 2016 was $1.11. Novo Nordisk A/S's Shiller P/E Ratio for today is 42.24.

NVO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 23.12   Max: 67.93
Current: 41.85

23.12
67.93

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 67.93. The lowest was 23.12. And the median was 44.16.

NVO's Shiller P/E Ratio is ranked higher than
61% of the 56 Companies
in the Global Biotechnology industry.

( Industry Median: 47.61 vs. NVO: 41.85 )

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. 2016 was $0.592. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.11 for the trailing ten years ended in Jun. 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
=46.89/1.11
=42.24

* 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 Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=0.592055580728/241.038*241.038
=0.592

Current CPI (Jun. 2016) = 241.038.

Novo Nordisk A/S Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.4500.4850.4280.4160.5500.4860.4910.4730.5540.592
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.4590.4900.4330.4270.5610.4910.4970.4820.5610.592
201109201112201203201206201209201212201303201306201309201312
per share eps 0.2730.2950.2960.3260.3570.3700.3820.4410.4280.417
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.2900.3150.3110.3430.3720.3890.3960.4550.4410.431
200903200906200909200912201003201006201009201012201103201106
per share eps 0.1540.1850.1790.1540.2050.1980.2160.2420.2650.278
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.1750.2070.2000.1710.2270.2190.2390.2660.2860.297
200609200612200703200706200709200712200803200806200809200812
per share eps 0.0940.0950.0950.2060.1280.0630.1450.3130.1650.137
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 0.1120.1140.1120.2380.1480.0720.1640.3450.1820.157

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 35.9442.9029.0730.4149.2742.8548.6343.2347.6760.66

Novo Nordisk A/S Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 50.9149.0053.0547.6764.2059.6556.2060.6650.8648.51
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