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Novo Nordisk A/S (NYSE:NVO)
Shiller PE Ratio
29.87 (As of Today)

As of today, Novo Nordisk A/S's current share price is $34.05. Novo Nordisk A/S's E10 for the quarter that ended in Dec. 2016 was $1.14. Novo Nordisk A/S's Shiller P/E Ratio for today is 29.87.

NVO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 23.23   Max: 67.69
Current: 28.53

23.23
67.69

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 67.69. The lowest was 23.23. And the median was 43.96.

NVO's Shiller PE Ratio is ranked higher than
76% of the 54 Companies
in the Global Biotechnology industry.

( Industry Median: 52.28 vs. NVO: 28.53 )

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. 2016 was $0.491. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.14 for the trailing ten years ended in Dec. 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
=34.05/1.14
=29.87

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Novo Nordisk A/S's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Novo Nordisk A/S's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=0.49061312461/241.432*241.432
=0.491

Current CPI (Dec. 2016) = 241.432.

Novo Nordisk A/S Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.4280.4160.5500.4860.4910.4730.5540.5920.5830.491
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.4340.4280.5620.4920.4980.4830.5620.5930.5830.491
201203201206201209201212201303201306201309201312201403201406
per share eps 0.2960.3260.3570.3700.3820.4410.4280.4170.4500.485
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.3110.3430.3730.3890.3960.4560.4420.4320.4600.491
200909200912201003201006201009201012201103201106201109201112
per share eps 0.1790.1540.2050.1980.2160.2420.2650.2780.2730.295
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.2010.1720.2270.2190.2390.2670.2870.2980.2900.315
200703200706200709200712200803200806200809200812200903200906
per share eps 0.0950.2060.1280.0630.1450.3130.1650.1370.1540.185
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 0.1120.2380.1480.0720.1640.3460.1820.1570.1750.207

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 local exchange's currency.

Novo Nordisk A/S Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 43.0229.1430.4848.9642.6248.4243.4747.9360.4331.50

Novo Nordisk A/S Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 53.3647.9363.9559.4356.5360.4350.6848.3535.6431.50
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