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

As of today, Novo Nordisk A/S's current share price is $45.12. Novo Nordisk A/S's E10 for the quarter that ended in Mar. 2014 was $1.18. Novo Nordisk A/S's Shiller P/E Ratio for today is 38.60.

NVO' s 10-Year Shiller P/E Ratio Range
Min: 10.55   Max: 43.06
Current: 38.6

10.55
43.06

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 43.06. The lowest was 10.55. And the median was 17.68.

NVO's Shiller P/E Ratiois ranked higher than
96% of the 956 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. NVO: 38.60 )

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 $0.456. 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 $1.18 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
=45.12/1.18
=38.24

* 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 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*239.556
=0.456

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

Current CPI = 239.556.

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 0.2890.3070.3330.3720.3920.3960.4480.4480.4260.456
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 0.2060.2020.1660.2230.2270.2510.2680.2930.2930.288
200806200809200812200903
per share eps 0.3170.1530.1340.156
CPI 218.815218.783210.228212.709
Adj_EPS 0.3470.1670.1530.176

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 13.2512.5514.8420.2215.5618.3331.9330.3236.8732.72

Novo Nordisk A/S Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 30.3233.2834.8935.9236.8735.7632.5532.2132.7238.13
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