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

As of today, Procter & Gamble Co's current share price is $82.32. Procter & Gamble Co's E10 for the quarter that ended in Dec. 2014 was $3.86. Procter & Gamble Co's Shiller P/E Ratio for today is 21.33.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.57   Max: 34.77
Current: 21.3

14.57
34.77

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 34.77. The lowest was 14.57. And the median was 19.78.

PG's Shiller P/E Ratiois ranked higher than
84% of the 1828 Companies
in the Global Household & Personal Products industry.

( Industry Median: 51.89 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 Dec. 2014 was $0.816. 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 $3.86 for the trailing six years ended in Dec. 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
=82.32/3.86
=21.33

* 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 Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.82/234.812*233.808
=0.816

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

Current CPI = 233.808.

Procter & Gamble Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.9601.3900.8800.5551.0401.1800.9000.8040.6900.820
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.9701.4150.8840.5561.0381.1840.8910.7890.6780.816
201003201006201009201012201103201106201109201112201203201206
per share eps 0.8300.6901.0201.1100.9600.8201.0300.5700.8201.152
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.8920.7401.0921.1841.0040.8491.0610.5910.8361.174
200903200906200909200912
per share eps 0.8400.7811.0601.490
CPI 212.709215.693215.969215.949
Adj_EPS 0.9230.8471.1481.613

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 28.8426.1424.4320.7615.7116.9616.6815.4118.7618.84

Procter & Gamble Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 17.2416.7418.6018.7618.4119.7619.3718.8420.4323.59
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