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GuruFocus has detected 2 Warning Signs with Occidental Petroleum Corp $OXY.
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Occidental Petroleum Corp (NYSE:OXY)
Shiller PE Ratio
16.02 (As of Today)

As of today, Occidental Petroleum Corp's current share price is $64.89. Occidental Petroleum Corp's E10 for the quarter that ended in Sep. 2016 was $4.05. Occidental Petroleum Corp's Shiller P/E Ratio for today is 16.02.

OXY' s Shiller PE Ratio Range Over the Past 10 Years
Min: 10.61   Max: 27.12
Current: 16.69

10.61
27.12

During the past 13 years, Occidental Petroleum Corp's highest Shiller P/E Ratio was 27.12. The lowest was 10.61. And the median was 16.13.

OXY's Shiller PE Ratio is ranked higher than
52% of the 83 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 17.05 vs. OXY: 16.69 )

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.

Occidental Petroleum Corp's adjusted earnings per share data for the three months ended in Sep. 2016 was $-0.320. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.05 for the trailing ten years ended in Sep. 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.

Occidental Petroleum Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=64.89/4.05
=16.02

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

Occidental Petroleum Corp's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Occidental Petroleum Corp's adjusted earnings per share data for the three months ended in Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=-0.32/241.428*241.428
=-0.320

Current CPI (Sep. 2016) = 241.428.

Occidental Petroleum Corp Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 1.550-4.340-0.2800.230-3.420-6.7700.100-0.180-0.320-0.360
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 1.572-4.462-0.2860.233-3.470-6.9100.101-0.180-0.320-0.360
201203201206201209201212201303201306201309201312201403201406
per share eps 1.9201.6401.6900.4201.6801.6401.9602.0401.7501.820
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 2.0211.7251.7630.4421.7421.6962.0212.1131.7881.844
200909200912201003201006201009201012201103201106201109201112
per share eps 1.1401.1501.3101.3101.4601.4901.9002.2302.1702.010
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.2741.2861.4531.4511.6141.6412.0532.3852.3092.150
200703200706200709200712200803200806200809200812200903200906
per share eps 1.4301.6801.5801.7502.2202.7802.7800.5500.4500.840
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 1.6811.9471.8302.0122.5103.0673.0680.6320.5110.940

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.

Occidental Petroleum Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 23.7214.9218.4020.4216.7312.5114.2313.0015.1618.32

Occidental Petroleum Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 13.5113.0011.9613.0612.3415.1615.7717.7917.9918.32
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