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Orbit International Corp (OTCPK:ORBT)
Shiller P/E Ratio
(As of Today)

As of today, Orbit International Corp's current share price is $3.28. Orbit International Corp's E10 for the quarter that ended in Dec. 2013 was $-0.45. Orbit International Corp'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.

Orbit International Corp's adjusted earnings per share data of for the fiscal year that ended in Dec13 was $-0.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-0.45 for the trailing ten years ended in Dec13.


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.

Orbit International Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=3.28/-0.45
=

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

Orbit International Corp's E10 for the quarter that ended in Dec. 2013 is calculated as:

For example, Orbit International Corp's adjusted earnings per share data for the fiscal year that ended in Dec13 was:

Adj_EPS=Earnigns per Share/CPI of Dec13 (Change)*Current CPI (Dec13)
=-0.58/233.049*233.049
=-0.580

Current CPI (Dec13) = 233.049.

Orbit International Corp Annual Data

200412200512200612200712200812200912201012201112201212201312
per share eps 0.5000.6000.5200.550-1.3-0.4-0.70.670-0.0-0.6
CPI 190.300196.800201.800210.036210.228215.949219.179225.672229.601233.049
Adj_EPS 0.6120.7110.6010.610-1.474-0.399-0.7020.692-0.030-0.580

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 own currency.

Orbit International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 84.7542.9518.1614.886.2831.83-130.35-56.600.000.00

Orbit International Corp Semi-Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 84.7542.9518.1614.886.2831.83-130.35-56.600.000.00
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