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Procter & Gamble Co (NYSE:PG)
Shiller P/E Ratio
19.40 (As of Today)

As of today, Procter & Gamble Co's current share price is $82.81. Procter & Gamble Co's E10 for the quarter that ended in Jun. 2014 was $4.23. Procter & Gamble Co's Shiller P/E Ratio for today is 19.40.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.61   Max: 34.77
Current: 19.4

14.61
34.77

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 34.77. The lowest was 14.61. And the median was 19.71.

PG's Shiller P/E Ratiois ranked higher than
83% of the 1586 Companies
in the Global Household & Personal Products industry.

( Industry Median: 294.81 vs. PG: 19.40 )

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.

Procter & Gamble Co's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.807. 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 $4.23 for the trailing six years ended in Jun. 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.

Procter & Gamble Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=82.81/4.23
=19.58

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

Procter & Gamble Co's E10 for the fiscal year that ended in Jun14 is calculated as:

For example, Procter & Gamble Co's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.804/238.343*239.229
=0.807

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

Current CPI = 239.229.

Procter & Gamble Co Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.8201.2140.9601.3900.8800.5551.0401.1800.9000.804
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.8551.2660.9921.4480.9040.5691.0631.2110.9110.807
200909200912201003201006201009201012201103201106201109201112
per share eps 1.0601.4900.8300.6901.0201.1100.9600.8981.0300.570
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.1741.6510.9120.7571.1171.2121.0280.9521.0860.604
200809200812200903200906
per share eps 1.0301.5800.8400.781
CPI 218.783210.228212.709215.693
Adj_EPS 1.1261.7980.9450.866

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.

Procter & Gamble Co Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ShillerPE 28.8926.2124.4920.6515.7617.0116.5415.2418.5118.69

Procter & Gamble Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 17.1715.2417.0616.5618.5918.5118.1719.6919.1218.69
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