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Primus Guaranty Ltd (OTCPK:PRSG)
Shiller PE Ratio
(As of Today)

As of today, Primus Guaranty Ltd's current share price is \$0.11. Primus Guaranty Ltd's E10 for the quarter that ended in Dec. 2011 was \$0.00. Primus Guaranty Ltd's Shiller P/E Ratio for today is .

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.

Primus Guaranty Ltd's adjusted earnings per share data for the three months ended in Dec. 2011 was \$2.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$0.00 for the trailing ten years ended in Dec. 2011.

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.

Primus Guaranty Ltd's Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 0.11 / 0.00 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Primus Guaranty Ltd's E10 for the fiscal year that ended in Dec11 is calculated as:

For example, Primus Guaranty Ltd's adjusted earnings per share data for the three months ended in Dec. 2011 was:

 Adj_EPS = Earnigns per Share / CPI of Dec. 2011 (Change) * Current CPI (Dec. 2011) = 2.67 / 225.672 * 225.672 = 2.670

Current CPI (Dec. 2011) = 225.672.

Primus Guaranty Ltd does not have a history long enough to calculate E10. Therefore GuruFocus does not calculate it.

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Primus Guaranty Ltd Annual Data

 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 ShillerPE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.37 0.41

Primus Guaranty Ltd Quarterly Data

 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 ShillerPE 0.00 0.00 0.00 0.28 0.33 0.37 0.38 0.42 0.42 0.41
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