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Sturm Ruger & Co Inc (NYSE:RGR)
Shiller P/E Ratio
18.18 (As of Today)

As of today, Sturm Ruger & Co Inc's current share price is $49.63. Sturm Ruger & Co Inc's E10 for the quarter that ended in Dec. 2014 was $2.73. Sturm Ruger & Co Inc's Shiller P/E Ratio for today is 18.18.

RGR' s 10-Year Shiller P/E Ratio Range
Min: 9.72   Max: 56.24
Current: 18.3

9.72
56.24

During the past 13 years, Sturm Ruger & Co Inc's highest Shiller P/E Ratio was 56.24. The lowest was 9.72. And the median was 26.10.

RGR's Shiller P/E Ratiois ranked higher than
90% of the 341 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 29.35 vs. RGR: 18.30 )

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. 2014 was $-0.763. 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 $2.73 for the trailing six years ended in Dec. 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.

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

Shiller P/E Ratio=Share Price/E10
=49.63/2.73
=18.18

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

Sturm Ruger & Co Inc's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Sturm Ruger & Co Inc's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=-0.766/234.812*233.808
=-0.763

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

Current CPI = 233.808.

Sturm Ruger & Co Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.8801.0191.2001.6301.4401.3271.2201.1200.340-0.766
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.8891.0381.2051.6321.4381.3311.2071.0990.334-0.763
201003201006201009201012201103201106201109201112201203201206
per share eps 0.4300.4200.3100.2970.4200.5600.5600.5380.7900.910
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.4620.4510.3320.3170.4390.5800.5770.5570.8050.927
200903200906200909200912
per share eps 0.3000.4500.3700.301
CPI 212.709215.693215.969215.949
Adj_EPS 0.3300.4880.4010.326

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.

Sturm Ruger & Co Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 14.0630.9927.6919.2020.1722.2833.0228.0229.2212.68

Sturm Ruger & Co Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 34.1928.0228.4323.8427.7029.2222.0120.2016.3712.68
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