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Nexen, Inc. (NYSE:NXY)
Shiller P/E Ratio
(As of Today)

As of today, Nexen, Inc.'s current share price is \$27.41. Nexen, Inc.'s E10 for the quarter that ended in Dec. 2012 was \$0.00. Nexen, Inc.'s Shiller P/E Ratio for today is .

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.

Nexen, Inc.'s adjusted earnings per share data for the three months ended in Dec. 2012 was \$-0.011. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$0.00 for the trailing ten years ended in Dec. 2012.

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.

Nexen, Inc.'s Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 27.41 / 0.00 =

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nexen, Inc.'s E10 for the fiscal year that ended in Dec12 is calculated as:

For example, Nexen, Inc.'s adjusted earnings per share data for the three months ended in Dec. 2012 was:

 Adj_EPS = Earnigns per Share / CPI of Dec. 2012 (Change) * Current CPI (Dec. 2012) = -0.0111111111111 / 229.601 * 229.601 = -0.011

Current CPI (Dec. 2012) = 229.601.

Nexen, Inc. Quarterly Data

 201009 201012 201103 201106 201109 201112 201203 201206 201209 201212 per share eps 0.987 0.415 0.389 0.461 0.319 0.078 0.322 0.185 0.112 -0.011 CPI 218.439 219.179 223.467 225.722 226.889 225.672 229.392 229.478 231.407 229.601 Adj_EPS 1.038 0.434 0.4 0.469 0.323 0.079 0.322 0.185 0.112 -0.011 200803 200806 200809 200812 200903 200906 200909 200912 201003 201006 per share eps 1.167 0.688 1.569 -0.267 0.206 0.036 0.213 0.455 0.342 0.472 CPI 213.528 218.815 218.783 210.228 212.709 215.693 215.969 215.949 217.631 217.965 Adj_EPS 1.254 0.722 1.647 -0.292 0.222 0.038 0.226 0.484 0.361 0.497 200509 200512 200603 200606 200609 200612 200703 200706 200709 200712 per share eps 0.976 0.482 -0.13 0.682 0.323 0.134 0.193 0.638 0.73 0.359 CPI 198.8 196.8 199.8 202.9 202.9 201.8 205.352 208.352 208.49 210.036 Adj_EPS 1.127 0.562 -0.149 0.772 0.365 0.153 0.215 0.704 0.804 0.393 200303 200306 200309 200312 200403 200406 200409 200412 200503 200506 per share eps 0.329 0.377 0.252 -0.105 0.277 0.201 0.328 0.377 0.058 0.306 CPI 184.2 183.7 185.2 184.3 187.4 189.7 189.9 190.3 193.3 194.5 Adj_EPS 0.41 0.471 0.312 -0.131 0.339 0.243 0.397 0.455 0.068 0.362

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nexen, Inc. Annual Data

 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 ShillerPE 26.53 17.78 25.19 21.41 21.60 9.62 13.18 11.85 8.87 15.61

Nexen, Inc. Quarterly Data

 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 ShillerPE 10.40 11.85 12.36 11.04 8.23 8.87 9.71 9.47 14.44 15.61
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