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

As of today, Procter & Gamble Co's current share price is $86.17. Procter & Gamble Co's E10 for the quarter that ended in Sep. 2014 was $4.05. Procter & Gamble Co's Shiller P/E Ratio for today is 21.28.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.61   Max: 34.77
Current: 21.3

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 19.90.

PG's Shiller P/E Ratiois ranked higher than
86% of the 1826 Companies
in the Global Household & Personal Products industry.

( Industry Median: 55.19 vs. PG: 21.30 )

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 Sep. 2014 was $0.682. 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 $4.05 for the trailing six years ended in Sep. 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
=86.17/4.05
=21.28

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.69/238.031*235.189
=0.682

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 235.189.

Procter & Gamble Co Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.1520.9601.3900.8800.5551.0401.1800.9000.8040.690
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.1810.9761.4240.8890.5591.0451.1910.8960.7930.682
200912201003201006201009201012201103201106201109201112201203
per share eps 1.4900.8300.6901.0201.1100.9600.8201.0300.5700.820
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 1.6230.8970.7451.0981.1911.0100.8541.0680.5940.841
200812200903200906200909
per share eps 1.5800.8400.7811.060
CPI 210.228212.709215.693215.969
Adj_EPS 1.7680.9290.8521.154

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 28.8826.1924.4620.6215.7416.9916.5715.3118.8319.01

Procter & Gamble Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 15.3117.3016.6318.6718.8318.3019.8419.4519.0120.87
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