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

As of today, Procter & Gamble Co's current share price is $83.50. Procter & Gamble Co's E10 for the quarter that ended in Jun. 2016 was $3.97. Procter & Gamble Co's Shiller P/E Ratio for today is 21.03.

PG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 17.05   Max: 35.07
Current: 21.14

17.05
35.07

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 35.07. The lowest was 17.05. And the median was 21.19.

PG's Shiller P/E Ratio is ranked higher than
65% of the 264 Companies
in the Global Household & Personal Products industry.

( Industry Median: 27.61 vs. PG: 21.14 )

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 of for the fiscal year that ended in Jun16 was $3.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.97 for the trailing ten years ended in Jun16.


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
=83.50/3.97
=21.03

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

Procter & Gamble Co's E10 for the quarter that ended in Jun. 2016 is calculated as:

For example, Procter & Gamble Co's adjusted earnings per share data for the fiscal year that ended in Jun16 was:

Adj_EPS=Earnigns per Share/CPI of Jun16 (Change)*Current CPI (Jun16)
=3.69/241.018*241.018
=3.690

Current CPI (Jun16) = 241.018.

Procter & Gamble Co Annual Data

200706200806200906201006201106201206201306201406201506201606
per share eps 3.0403.6404.2604.1103.9303.6603.8604.0102.4403.690
CPI 208.352218.815215.693217.965225.722229.478233.504238.343238.638241.018
Adj_EPS 3.5174.0094.7604.5454.1963.8443.9844.0552.4643.690

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.

Procter & Gamble Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ShillerPE 29.6525.6419.5620.7019.4017.4620.7419.9120.1721.33

Procter & Gamble Co Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 19.9121.5223.6821.0820.1718.7420.5521.1821.3322.60
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