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

As of today, Procter & Gamble Co's current share price is $76.70. Procter & Gamble Co's E10 for the quarter that ended in Mar. 2015 was $3.91. Procter & Gamble Co's Shiller P/E Ratio for today is 19.62.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.52   Max: 34.27
Current: 19.74

14.52
34.27

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 34.27. The lowest was 14.52. And the median was 19.81.

PG's Shiller P/E Ratiois ranked higher than
54% of the 652 Companies
in the Global Household & Personal Products industry.

( Industry Median: 22.32 vs. PG: 19.74 )

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 Mar. 2015 was $0.758. 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 $3.91 for the trailing six years ended in Mar. 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
=76.70/3.91
=19.62

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.75/236.119*238.709
=0.758

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

Current CPI = 238.709.

Procter & Gamble Co Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 1.3900.8800.5551.0401.1800.9000.8040.6900.8200.750
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 1.4450.9020.5671.0601.2090.9090.8050.6920.8340.758
201006201009201012201103201106201109201112201203201206201209
per share eps 0.6901.0201.1100.9600.8201.0300.5700.8201.1520.960
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.7561.1151.2091.0250.8671.0840.6030.8531.1980.990
200906200909200912201003
per share eps 0.7811.0601.4900.830
CPI 215.693215.969215.949217.631
Adj_EPS 0.8641.1721.6470.910

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 28.9526.2824.5620.7215.8117.0616.6415.3818.7218.81

Procter & Gamble Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 16.7018.7418.7218.3719.7219.3418.8120.3923.5520.93
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