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

As of today, Sturm Ruger & Co Inc's current share price is $61.69. Sturm Ruger & Co Inc's E10 for the quarter that ended in Jun. 2015 was $2.94. Sturm Ruger & Co Inc's Shiller P/E Ratio for today is 20.98.

RGR' s 10-Year Shiller P/E Ratio Range
Min: 9.57   Max: 56.24
Current: 21.08

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 25.67.

RGR's Shiller P/E Ratiois ranked higher than
54% of the 118 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 21.74 vs. RGR: 21.08 )

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 Jun. 2015 was $0.910. 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 Jun. 2015.


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
=61.69/2.94
=20.98

* 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 Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.91/238.638*238.662
=0.910

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

Current CPI = 238.662.

Sturm Ruger & Co Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 1.2001.6301.4401.3271.2201.1200.340-0.7660.8100.910
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 1.2301.6661.4681.3591.2321.1210.341-0.7790.8190.910
201009201012201103201106201109201112201203201206201209201212
per share eps 0.3100.2970.4200.5600.5600.5380.7900.9100.8801.019
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 0.3390.3230.4490.5920.5890.5690.8220.9460.9081.059
200909200912201003201006
per share eps 0.3700.3010.4300.420
CPI 215.969215.949217.631217.965
Adj_EPS 0.4090.3330.4720.460

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 13.9730.6727.3819.0020.0222.1132.8627.9429.4212.64

Sturm Ruger & Co Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 28.6223.7827.6429.4221.9620.1516.4912.6417.4419.52
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