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

As of today, Sturm Ruger & Co Inc's current share price is $34.85. Sturm Ruger & Co Inc's E10 for the quarter that ended in Sep. 2014 was $2.94. Sturm Ruger & Co Inc's Shiller P/E Ratio for today is 11.85.

RGR' s 10-Year Shiller P/E Ratio Range
Min: 9.57   Max: 56.24
Current: 11.85

9.57
56.24

During the past 13 years, Sturm Ruger & Co Inc's highest Shiller P/E Ratio was 56.24. The lowest was 9.57. And the median was 25.70.

RGR's Shiller P/E Ratiois ranked higher than
95% of the 332 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 25.00 vs. RGR: 11.85 )

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 Sep. 2014 was $0.336. 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 $2.94 for the trailing six years ended in Sep. 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
=34.85/2.94
=11.85

* 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 Dec13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.34/238.031*235.51
=0.336

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

Current CPI = 235.51.

Sturm Ruger & Co Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.9100.8801.0191.2001.6301.4401.3271.2201.1200.340
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.9340.8961.0451.2141.6441.4481.3411.2161.1070.336
200912201003201006201009201012201103201106201109201112201203
per share eps 0.3010.4300.4200.3100.2970.4200.5600.5600.5380.790
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.3280.4650.4540.3340.3190.4430.5840.5810.5610.811
200812200903200906200909
per share eps 0.3020.3000.4500.370
CPI 210.228212.709215.693215.969
Adj_EPS 0.3380.3320.4910.403

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 12.8313.9630.6227.3418.9720.0122.0932.8128.0829.27

Sturm Ruger & Co Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 31.0734.2728.0828.4923.8827.7529.2722.0520.1616.87
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