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GuruFocus has detected 4 Warning Signs with Sturm Ruger & Co Inc $RGR.
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Sturm Ruger & Co Inc (NYSE:RGR)
Shiller PE Ratio
22.20 (As of Today)

As of today, Sturm Ruger & Co Inc's current share price is $57.95. Sturm Ruger & Co Inc's E10 for the quarter that ended in Dec. 2016 was $2.61. Sturm Ruger & Co Inc's Shiller P/E Ratio for today is 22.20.

RGR' s Shiller PE Ratio Range Over the Past 10 Years
Min: 7.78   Max: 65.64
Current: 22.19

7.78
65.64

During the past 13 years, Sturm Ruger & Co Inc's highest Shiller P/E Ratio was 65.64. The lowest was 7.78. And the median was 25.96.

RGR's Shiller PE Ratio is ranked higher than
82% of the 73 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 30.65 vs. RGR: 22.19 )

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.

Sturm Ruger & Co Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was $1.110. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.61 for the trailing ten years ended in Dec. 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.

Sturm Ruger & Co Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=57.95/2.61
=22.20

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

Sturm Ruger & Co Inc's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Sturm Ruger & Co Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=1.11/241.432*241.432
=1.110

Current CPI (Dec. 2016) = 241.432.

Sturm Ruger & Co Inc Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.340-0.7600.8100.9100.6200.8801.2101.2201.0301.110
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.345-0.7810.8280.9210.6290.8981.2271.2221.0301.110
201203201206201209201212201303201306201309201312201403201406
per share eps 0.7900.9100.8801.0201.2001.6301.4401.3301.2201.120
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.8310.9570.9181.0731.2451.6851.4851.3781.2471.135
200909200912201003201006201009201012201103201106201109201112
per share eps 0.3700.3000.4300.4200.3100.2900.4200.5600.5600.540
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.4140.3350.4770.4650.3430.3190.4540.5990.5960.578
200703200706200709200712200803200806200809200812200903200906
per share eps 0.3600.220-0.030-0.0900.0700.0500.0200.2900.3000.450
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 0.4230.255-0.035-0.1030.0790.0550.0220.3330.3410.504

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.

Sturm Ruger & Co Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 12.7110.3316.9325.3743.3640.5744.1219.2328.5220.19

Sturm Ruger & Co Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 25.5819.2326.3429.5229.4328.5231.0027.0823.4620.19
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