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

As of today, Novo Nordisk A/S's current share price is $46.05. Novo Nordisk A/S's E10 for the quarter that ended in Mar. 2014 was $1.17. Novo Nordisk A/S's Shiller P/E Ratio for today is 39.40.

NVO' s 10-Year Shiller P/E Ratio Range
Min: 10.52   Max: 43.15
Current: 39.4

10.52
43.15

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 43.15. The lowest was 10.52. And the median was 17.73.

NVO's Shiller P/E Ratiois ranked higher than
96% of the 958 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. NVO: 39.40 )

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. 2014 was $0.454. 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 $1.17 for the trailing six years ended in Mar. 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
=46.05/1.17
=39.36

* 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 Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.449500554939/236.293*238.786
=0.454

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

Current CPI = 238.786.

Novo Nordisk A/S Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.2730.2940.3190.3590.3760.3840.4370.4380.4140.450
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.2880.3060.3320.3710.3910.3940.4470.4460.4250.454
200906200909200912201003201006201009201012201103201106201109
per share eps 0.1860.1820.1500.2020.2070.2290.2450.2740.2760.273
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.2060.2020.1660.2220.2270.2510.2670.2930.2920.287
200806200809200812200903
per share eps 0.3170.1530.1340.156
CPI 218.815218.783210.228212.709
Adj_EPS 0.3460.1670.1530.175

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 13.1912.5014.7820.2915.6118.4032.0330.4036.9432.49

Novo Nordisk A/S Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 30.4033.3534.9735.6736.9435.8232.3132.2932.4938.23
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