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PMC-Sierra Inc (NAS:PMCS)
Shiller P/E Ratio
(As of Today)

As of today, PMC-Sierra Inc's current share price is $8.98. PMC-Sierra Inc's E10 for the quarter that ended in Sep. 2014 was $-0.14. PMC-Sierra Inc's Shiller P/E Ratio for today is .

PMCS' s 10-Year Shiller P/E Ratio Range
Min: 42.31   Max: 166.4
Current: 0

42.31
166.4

During the past 13 years, PMC-Sierra Inc's highest Shiller P/E Ratio was 166.40. The lowest was 42.31. And the median was 90.38.

PMCS's Shiller P/E Ratiois ranked lower than
51% of the 1161 Companies
in the Global Semiconductors industry.

( Industry Median: 9999.00 vs. PMCS: 0.00 )

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.

PMC-Sierra Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $0.030. 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 $-0.14 for the trailing six years ended in Sep. 2014.


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.

PMC-Sierra Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=8.98/-0.14
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

PMC-Sierra Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, PMC-Sierra Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.03/238.031*235.51
=0.030

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

Current CPI = 235.51.

PMC-Sierra Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.000-1.3100.092-0.040-0.020-0.020-0.078-0.020-0.0200.030
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.000-1.3330.094-0.040-0.020-0.020-0.079-0.020-0.0200.030
200912201003201006201009201012201103201106201109201112201203
per share eps 0.0650.1200.1300.0600.017-0.0300.0700.2000.063-0.290
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.0710.1300.1400.0650.018-0.0320.0730.2080.066-0.298
200812200903200906200909
per share eps 0.036-0.0200.0300.120
CPI 210.228212.709215.693215.969
Adj_EPS 0.040-0.0220.0330.131

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.

PMC-Sierra Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE -23.40-12.26-8.00-49.30123.96103.6498.0850.750.000.00

PMC-Sierra Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 48.67-71.590.000.000.000.000.000.000.000.00
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