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

As of today, Procter & Gamble Co's current share price is $78.16. Procter & Gamble Co's E10 for the quarter that ended in Mar. 2014 was $4.21. Procter & Gamble Co's Shiller P/E Ratio for today is 18.70.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.34   Max: 34.13
Current: 18.7

14.34
34.13

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 34.13. The lowest was 14.34. And the median was 19.67.

PG's Shiller P/E Ratiois ranked higher than
89% of the 1582 Companies
in the Global Household & Personal Products industry.

( Industry Median: 9999.00 vs. PG: 18.70 )

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. 2014 was $0.909. 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 $4.21 for the trailing six years ended in Mar. 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
=78.16/4.21
=18.57

* 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 Jun13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.9/236.293*238.786
=0.909

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

Current CPI = 238.786.

Procter & Gamble Co Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.5700.8201.3010.9601.3900.8800.6381.0401.1800.900
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.6030.8541.3540.9911.4460.9030.6521.0611.2090.909
200906200909200912201003201006201009201012201103201106201109
per share eps 0.7811.0601.4900.8300.6901.0201.1100.9600.8201.030
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.8651.1721.6480.9110.7561.1151.2091.0260.8671.084
200806200809200812200903
per share eps 0.9071.0301.5800.840
CPI 218.815218.783210.228212.709
Adj_EPS 0.9901.1241.7950.943

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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ShillerPE 33.1228.1425.7324.1920.4315.6216.9616.6615.3118.54

Procter & Gamble Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 17.5717.3015.3117.1316.6318.6618.5418.2019.5319.16
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