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Richardson Electronics Ltd (NAS:RELL)
Shiller PE Ratio
8.74 (As of Today)

As of today, Richardson Electronics Ltd's current share price is USD 5.94. Richardson Electronics Ltd's E10 for the quarter that ended in Nov. 2016 was USD 0.68. Richardson Electronics Ltd's Shiller P/E Ratio for today is 8.74.

RELL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 6.88   Max: 107.75
Current: 8.76

6.88
107.75

During the past 13 years, Richardson Electronics Ltd's highest Shiller P/E Ratio was 107.75. The lowest was 6.88. And the median was 17.78.

RELL's Shiller PE Ratio is ranked higher than
92% of the 346 Companies
in the Global Electronics Distribution industry.

( Industry Median: 34.50 vs. RELL: 8.76 )

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.

Richardson Electronics Ltd's adjusted earnings per share data for the three months ended in Nov. 2016 was USD -0.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is USD 0.68 for the trailing ten years ended in Nov. 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.

Richardson Electronics Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=5.94/0.68
=8.74

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

Richardson Electronics Ltd's E10 for the fiscal year that ended in May16 is calculated as:

For example, Richardson Electronics Ltd's adjusted earnings per share data for the three months ended in Nov. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Nov. 2016 (Change)*Current CPI (Nov. 2016)
=-0.26/241.353*241.353
=-0.260

Current CPI (Nov. 2016) = 241.353.

Richardson Electronics Ltd Quarterly Data

201408201411201502201505201508201511201602201605201608201611
per share eps -0.010-0.070-0.160-0.170-0.100-0.240-0.230-0.020-0.230-0.260
CPI 237.852236.151234.722237.805238.316237.336237.111240.229240.849241.353
Adj_EPS -0.010-0.072-0.165-0.173-0.101-0.244-0.234-0.020-0.230-0.260
201202201205201208201211201302201305201308201311201402201405
per share eps 0.0800.1600.0400.0200.030-0.0200.1400.030-0.038-0.177
CPI 227.663229.815230.379230.221232.166232.945233.877233.069234.781237.900
Adj_EPS 0.0850.1680.0420.0210.031-0.0210.1440.031-0.039-0.180
200908200911201002201005201008201011201102201105201108201111
per share eps 0.1100.1800.2600.3500.4700.4100.4103.6000.2100.040
CPI 215.834216.330216.741218.178218.312218.803221.309225.964226.545226.230
Adj_EPS 0.1230.2010.2900.3870.5200.4520.4473.8450.2240.043
200702200705200708200711200802200805200808200811200902200905
per share eps 0.0602.240-0.040-0.040-0.120-0.3000.3800.310-0.650-0.590
CPI 203.499207.949207.917210.177211.693216.632219.086212.425212.193213.856
Adj_EPS 0.0712.600-0.046-0.046-0.137-0.3340.4190.352-0.739-0.666

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.

Richardson Electronics Ltd Annual Data

May07May08May09May10May11May12May13May14May15May16
ShillerPE 22.1819.3626.2085.4928.8418.4016.4214.9011.497.22

Richardson Electronics Ltd Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ShillerPE 15.0715.7911.6811.498.427.987.097.229.918.89
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