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Sturm Ruger & Company (NYSE:RGR)
Shiller P/E Ratio
21.40 (As of Today)

As of today, Sturm Ruger & Company's current share price is $57.65. Sturm Ruger & Company's E10 for the quarter that ended in Mar. 2014 was $2.72. Sturm Ruger & Company's Shiller P/E Ratio for today is 21.40.

RGR' s 10-Year Shiller P/E Ratio Range
Min: 9.72   Max: 56.24
Current: 21.4

9.72
56.24

During the past 13 years, Sturm Ruger & Company's highest Shiller P/E Ratio was 56.24. The lowest was 9.72. And the median was 25.67.

RGR's Shiller P/E Ratiois ranked higher than
84% of the 275 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 24.24 vs. RGR: 21.40 )

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 & Company's adjusted earnings per share data for the three months ended in Mar. 2014 was $1.233. 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 $2.72 for the trailing six years ended in Mar. 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 & Company's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=57.65/2.72
=21.19

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

Sturm Ruger & Company's E10 for the fiscal year that ended in Dec13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=1.22/236.293*238.786
=1.233

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.786.

Sturm Ruger & Company Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.5380.7900.9100.8801.0191.2001.6301.4401.3271.220
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.5690.8220.9470.9081.0601.2311.6671.4691.3601.233
200906200909200912201003201006201009201012201103201106201109
per share eps 0.4500.3700.3010.4300.4200.3100.2970.4200.5600.560
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.4980.4090.3330.4720.4600.3390.3240.4490.5920.589
200806200809200812200903
per share eps 0.0500.0200.3020.300
CPI 218.815218.783210.228212.709
Adj_EPS 0.0550.0220.3430.337

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 & Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 12.7613.9030.4227.4419.0420.0722.1532.9127.9729.17

Sturm Ruger & Company Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 32.9142.3930.9234.1227.9728.6423.7927.6529.1721.98
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