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

As of today, Procter & Gamble Co's current share price is $83.72. Procter & Gamble Co's E10 for the quarter that ended in Mar. 2016 was $3.90. Procter & Gamble Co's Shiller P/E Ratio for today is 21.47.

PG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 17.19   Max: 34.74
Current: 21.43

17.19
34.74

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 34.74. The lowest was 17.19. And the median was 21.32.

PG's Shiller P/E Ratio is ranked higher than
61% of the 251 Companies
in the Global Household & Personal Products industry.

( Industry Median: 27.29 vs. PG: 21.43 )

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 Mar. 2016 was $0.970. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.90 for the trailing ten years ended in Mar. 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.

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

Shiller P/E Ratio=Share Price/E10
=83.72/3.90
=21.47

* 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 Jun15 is calculated as:

For example, Procter & Gamble Co's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.97/238.132*238.132
=0.970

Current CPI (Mar. 2016) = 238.132.

Procter & Gamble Co Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 1.1800.9000.8040.6900.8200.7500.1570.9101.1200.970
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 1.2060.9070.8030.6900.8320.7560.1570.9111.1280.970
201106201109201112201203201206201209201212201303201306201309
per share eps 0.8201.0300.5700.8201.1520.9601.3900.8800.5551.040
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.8651.0810.6010.8511.1950.9881.4420.9000.5661.058
200812200903200906200909200912201003201006201009201012201103
per share eps 1.5800.8400.7811.0601.4900.8300.6901.0201.1100.960
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 1.7900.9400.8621.1691.6430.9080.7541.1121.2061.023
200606200609200612200703200706200709200712200803200806200809
per share eps 0.5400.7900.8400.7400.7070.9200.9800.8200.9071.030
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.6340.9270.9910.8580.8081.0511.1110.9140.9871.121

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.

Procter & Gamble Co Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 29.5129.3125.4519.4420.6119.3317.5920.8320.2220.49

Procter & Gamble Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 21.6721.1320.2221.6523.8221.4120.4918.8420.8621.08
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