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

As of today, Procter & Gamble Co's current share price is $71.48. Procter & Gamble Co's E10 for the quarter that ended in Jun. 2015 was $3.79. Procter & Gamble Co's Shiller P/E Ratio for today is 18.86.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.61   Max: 34.27
Current: 18.88

14.61
34.27

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 34.27. The lowest was 14.61. And the median was 19.79.

PG's Shiller P/E Ratiois ranked higher than
57% of the 666 Companies
in the Global Household & Personal Products industry.

( Industry Median: 21.47 vs. PG: 18.88 )

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. 2015 was $0.091. 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 $3.79 for the trailing six years ended in Jun. 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
=71.48/3.79
=18.86

* 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 Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.091/238.638*238.662
=0.091

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

Current CPI = 238.662.

Procter & Gamble Co Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.8800.5551.0401.1800.9000.8040.6900.8200.7500.091
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 0.9020.5671.0601.2080.9090.8050.6920.8330.7580.091
201009201012201103201106201109201112201203201206201209201212
per share eps 1.0201.1100.9600.8201.0300.5700.8201.1520.9601.390
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 1.1141.2091.0250.8671.0830.6030.8531.1980.9901.445
200909200912201003201006
per share eps 1.0601.4900.8300.690
CPI 215.969215.949217.631217.965
Adj_EPS 1.1711.6470.9100.756

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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 26.2024.4920.6515.7617.0116.6015.3518.7018.7820.64

Procter & Gamble Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 18.7218.7018.3619.8919.3118.7820.5623.5121.1120.64
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