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

As of today, Procter & Gamble Co's current share price is $80.99. Procter & Gamble Co's E10 for the quarter that ended in Dec. 2015 was $3.81. Procter & Gamble Co's Shiller P/E Ratio for today is 21.26.

PG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 17.14   Max: 36.62
Current: 21.06

17.14
36.62

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 36.62. The lowest was 17.14. And the median was 21.38.

PG's Shiller P/E Ratio is ranked higher than
60% of the 351 Companies
in the Global Household & Personal Products industry.

( Industry Median: 25.45 vs. PG: 21.06 )

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. 2015 was $1.120. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.81 for the trailing ten years ended in Dec. 2015.


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
=80.99/3.81
=21.26

* 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 Jun15 is calculated as:

For example, Procter & Gamble Co's adjusted earnings per share data for the three months ended in Dec. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=1.12/236.525*236.525
=1.120

Current CPI (Dec. 2015) = 236.525.

Procter & Gamble Co Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 1.0401.1800.9000.8900.6900.8200.7500.1800.9101.120
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 1.0511.1980.9010.8830.6860.8260.7510.1780.9051.120
201103201106201109201112201203201206201209201212201303201306
per share eps 0.9600.8401.0300.5700.8201.2400.9601.3900.8800.640
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 1.0160.8801.0740.5970.8451.2780.9811.4320.8940.648
200809200812200903200906200909200912201003201006201009201012
per share eps 1.0301.5800.8400.8001.0601.4900.8300.7201.0201.110
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 1.1141.7780.9340.8771.1611.6320.9020.7811.1041.198
200603200606200609200612200703200706200709200712200803200806
per share eps 0.6300.5400.7900.8400.7400.6700.9200.9800.8200.920
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 0.7460.6290.9210.9850.8520.7611.0441.1040.9080.994

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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 29.8329.5825.5719.5120.6519.5417.5720.6520.0020.27

Procter & Gamble Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 20.2721.6321.0820.1721.6023.7821.3720.4818.8420.86
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK