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

As of today, Novo Nordisk A/S's current share price is $35.95. Novo Nordisk A/S's E10 for the quarter that ended in Sep. 2016 was $0.96. Novo Nordisk A/S's Shiller P/E Ratio for today is 37.45.

NVO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 23.23   Max: 67.58
Current: 32.67

23.23
67.58

During the past 13 years, Novo Nordisk A/S's highest Shiller P/E Ratio was 67.58. The lowest was 23.23. And the median was 44.16.

NVO's Shiller P/E Ratio is ranked higher than
66% of the 58 Companies
in the Global Biotechnology industry.

( Industry Median: 48.79 vs. NVO: 32.67 )

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 of for the fiscal year that ended in Dec15 was $1.973. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.96 for the trailing ten years ended in Dec15.


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
=35.95/0.96
=37.45

* 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 quarter that ended in Sep. 2016 is calculated as:

For example, Novo Nordisk A/S's adjusted earnings per share data for the fiscal year that ended in Dec15 was:

Adj_EPS=Earnigns per Share/CPI of Dec15 (Change)*Current CPI (Dec15)
=1.97285860207/236.525*236.525
=1.973

Current CPI (Dec15) = 236.525.

Novo Nordisk A/S Annual Data

200612200712200812200912201012201112201212201312201412201512
per share eps 0.3540.5240.5620.6980.8731.0611.3671.7181.6691.973
CPI 201.800210.036210.228215.949219.179225.672229.601233.049234.812236.525
Adj_EPS 0.4150.5900.6320.7650.9421.1121.4081.7441.6811.973

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 36.0443.0229.1430.4748.9442.6048.3743.4147.8860.37

Novo Nordisk A/S Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 48.7553.2947.8863.8759.3656.4660.3751.1048.2735.58
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