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

As of today, Procter & Gamble Co's current share price is $88.19. Procter & Gamble Co's E10 for the quarter that ended in Jun. 2016 was $3.95. Procter & Gamble Co's Shiller P/E Ratio for today is 22.33.

PG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 17.19   Max: 35.07
Current: 22.36

17.19
35.07

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 35.07. The lowest was 17.19. And the median was 21.28.

PG's Shiller P/E Ratio is ranked higher than
64% of the 262 Companies
in the Global Household & Personal Products industry.

( Industry Median: 29.54 vs. PG: 22.36 )

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 Jun. 2016 was $0.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.95 for the trailing ten years ended in Jun. 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
=88.19/3.95
=22.33

* 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 Jun16 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=0.69/241.038*241.038
=0.690

Current CPI (Jun. 2016) = 241.038.

Procter & Gamble Co Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.9000.8900.6900.8200.7500.1700.9101.1200.9700.690
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.9180.9000.6990.8420.7660.1720.9221.1410.9820.690
201109201112201203201206201209201212201303201306201309201312
per share eps 1.0300.5700.8201.2400.9601.3900.8800.6401.0401.180
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.0940.6090.8621.3021.0001.4590.9110.6611.0711.220
200903200906200909200912201003201006201009201012201103201106
per share eps 0.8400.8001.0601.4900.8300.7201.0201.1100.9600.840
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.9520.8941.1831.6630.9190.7961.1261.2211.0350.897
200609200612200703200706200709200712200803200806200809200812
per share eps 0.7900.8400.7400.6700.9200.9800.8200.9201.0301.580
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 0.9381.0030.8690.7751.0641.1250.9261.0131.1351.812

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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ShillerPE 29.6025.5919.5220.6619.3617.5820.6720.0320.3021.46

Procter & Gamble Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 20.9720.0321.4523.6021.2120.3018.6720.6821.1021.46
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