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

As of today, Procter & Gamble Co's current share price is $84.96. Procter & Gamble Co's E10 for the quarter that ended in Sep. 2016 was $3.96. Procter & Gamble Co's Shiller P/E Ratio for today is 21.45.

PG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 17.09   Max: 35.24
Current: 21.45

17.09
35.24

During the past 13 years, Procter & Gamble Co's highest Shiller P/E Ratio was 35.24. The lowest was 17.09. And the median was 21.22.

PG's Shiller P/E Ratio is ranked higher than
66% of the 260 Companies
in the Global Household & Personal Products industry.

( Industry Median: 27.70 vs. PG: 21.45 )

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 Sep. 2016 was $0.960. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.96 for the trailing ten years ended in Sep. 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
=84.96/3.96
=21.45

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=0.96/241.428*241.428
=0.960

Current CPI (Sep. 2016) = 241.428.

Procter & Gamble Co Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 0.8900.6900.8200.7500.1700.9101.1200.9700.6900.960
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 0.9020.7000.8430.7670.1720.9231.1430.9830.6910.960
201112201203201206201209201212201303201306201309201312201403
per share eps 0.5700.8201.2400.9601.3900.8800.6401.0401.1800.900
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.6100.8631.3051.0021.4620.9130.6621.0721.2220.920
200906200909200912201003201006201009201012201103201106201109
per share eps 0.8001.0601.4900.8300.7201.0201.1100.9600.8401.030
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.8951.1851.6660.9210.7981.1271.2231.0370.8981.096
200612200703200706200709200712200803200806200809200812200903
per share eps 0.8400.7400.6700.9200.9800.8200.9201.0301.5800.840
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 1.0050.8700.7761.0651.1260.9271.0151.1371.8140.953

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 local exchange's currency.

Procter & Gamble Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ShillerPE 29.7525.4919.6220.7519.4617.5120.5919.9620.2321.39

Procter & Gamble Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 19.9621.3723.7521.1420.2318.6120.6021.0321.3922.67
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