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

As of today, Sturm Ruger & Co Inc's current share price is $56.18. Sturm Ruger & Co Inc's E10 for the quarter that ended in Dec. 2014 was $2.76. Sturm Ruger & Co Inc's Shiller P/E Ratio for today is 20.36.

RGR' s 10-Year Shiller P/E Ratio Range
Min: 9.57   Max: 56.24
Current: 20.5

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 25.74.

RGR's Shiller P/E Ratiois ranked higher than
87% of the 405 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 37.20 vs. RGR: 20.50 )

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 $-0.773. 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 $2.76 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
=56.18/2.76
=20.36

* 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*236.818
=-0.773

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

Current CPI = 236.818.

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 0.9011.0511.2211.6531.4561.3481.2231.1130.338-0.773
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 0.4680.4560.3360.3210.4450.5880.5850.5650.8160.939
200903200906200909200912
per share eps 0.3000.4500.3700.301
CPI 212.709215.693215.969215.949
Adj_EPS 0.3340.4940.4060.330

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 13.9630.6227.3418.9720.0122.0932.8128.0829.2712.56

Sturm Ruger & Co Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 34.2728.0828.4923.8827.7529.2722.0520.2316.3912.56
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