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

As of today, Procter & Gamble Co's current share price is $81.76. Procter & Gamble Co's E10 for the quarter that ended in Dec. 2013 was $4.17. Procter & Gamble Co's Shiller P/E Ratio for today is 19.60.

PG' s 10-Year Shiller P/E Ratio Range
Min: 14.57   Max: 34.77
Current: 19.6

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 20.72.

PG's Shiller P/E Ratiois ranked higher than
68% of the 681 Companies
in the Global Household & Personal Products industry.

( Industry Median: 20.60 vs. PG: 19.60 )

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. 2013 was $1.198. 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 $4.17 for the trailing six years ended in Dec. 2013.


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
=81.76/4.17
=19.61

* 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 Jun13 is calculated as:

For example, Procter & Gamble Co's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=1.18/233.049*236.511
=1.198

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Procter & Gamble Co Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 1.0300.5700.8201.3010.9601.3900.8800.6381.0401.180
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.0740.5970.8451.3410.9811.4320.8940.6461.0501.198
200903200906200909200912201003201006201009201012201103201106
per share eps 0.8400.7811.0601.4900.8300.6901.0201.1100.9600.820
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.9340.8561.1611.6320.9020.7491.1041.1981.0160.859
200803200806200809200812
per share eps 0.8200.9071.0301.580
CPI 213.528218.815218.783210.228
Adj_EPS 0.9080.9801.1131.778

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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ShillerPE 33.1928.1825.7724.2220.4415.6416.9916.6815.3218.55

Procter & Gamble Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 16.3217.5917.3115.3217.1516.6418.6718.5518.2119.54
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