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Rockwell Automation Inc (NYSE:ROK)
Shiller P/E Ratio
25.50 (As of Today)

As of today, Rockwell Automation Inc's current share price is $115.77. Rockwell Automation Inc's E10 for the quarter that ended in Sep. 2014 was $4.54. Rockwell Automation Inc's Shiller P/E Ratio for today is 25.50.

ROK' s 10-Year Shiller P/E Ratio Range
Min: 4.61   Max: 40.44
Current: 25.5

4.61
40.44

During the past 13 years, Rockwell Automation Inc's highest Shiller P/E Ratio was 40.44. The lowest was 4.61. And the median was 20.69.

ROK's Shiller P/E Ratiois ranked higher than
83% of the 2199 Companies
in the Global Diversified Industrials industry.

( Industry Median: 57.67 vs. ROK: 25.50 )

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.

Rockwell Automation Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $1.760. 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 $4.54 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.

Rockwell Automation Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=115.77/4.54
=25.50

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

Rockwell Automation Inc's E10 for the fiscal year that ended in Sep14 is calculated as:

For example, Rockwell Automation 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
=1.792/238.031*233.808
=1.760

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

Current CPI = 233.808.

Rockwell Automation Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 1.3791.1401.2401.4501.5351.4101.2801.4301.7921.560
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 1.3931.1611.2461.4521.5331.4151.2671.4031.7601.553
201003201006201009201012201103201106201109201112201203201206
per share eps 0.9500.8300.9141.0401.1401.2301.3981.2701.1601.330
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 1.0210.8900.9781.1091.1931.2741.4411.3161.1821.355
200903200906200909200912
per share eps 0.2900.2300.2020.530
CPI 212.709215.693215.969215.949
Adj_EPS 0.3190.2490.2190.574

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.

Rockwell Automation Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ShillerPE 27.0528.6020.999.3310.8314.8012.0514.0325.5924.23

Rockwell Automation Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 14.0318.1621.1720.1625.5927.9928.9728.4824.2324.43
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