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RR Donnelley & Sons Co (NAS:RRD)
Shiller P/E Ratio
(As of Today)

As of today, RR Donnelley & Sons Co's current share price is $16.44. RR Donnelley & Sons Co's E10 for the quarter that ended in Sep. 2014 was $-0.93. RR Donnelley & Sons Co's Shiller P/E Ratio for today is .

RRD' s 10-Year Shiller P/E Ratio Range
Min: 7.97   Max: 255.4
Current: 0

7.97
255.4

During the past 13 years, RR Donnelley & Sons Co's highest Shiller P/E Ratio was 255.40. The lowest was 7.97. And the median was 29.34.

RRD's Shiller P/E Ratiois ranked higher than
58% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 9999.00 vs. RRD: 0.00 )

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.

RR Donnelley & Sons Co's adjusted earnings per share data for the three months ended in Sep. 2014 was $0.307. 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 $-0.93 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.

RR Donnelley & Sons Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=16.44/-0.93
=

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

RR Donnelley & Sons Co's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, RR Donnelley & Sons Co'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
=0.31/238.031*235.51
=0.307

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

Current CPI = 235.51.

RR Donnelley & Sons Co Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.4900.390-4.6980.1500.3600.0800.565-0.1500.3200.310
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.5030.397-4.8190.1520.3630.0800.571-0.1500.3160.307
200912201003201006201009201012201103201106201109201112201203
per share eps -0.3870.2500.4200.2500.1290.1600.0600.830-1.7790.210
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -0.4220.2710.4540.2700.1390.1690.0630.862-1.8570.216
200812200903200906200909
per share eps -3.3540.0700.1200.060
CPI 210.228212.709215.693215.969
Adj_EPS -3.7570.0780.1310.065

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.

RR Donnelley & Sons Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 23.7529.2232.8335.9321.7269.7246.90102.580.000.00

RR Donnelley & Sons Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 216.6015,043.560.000.000.000.000.000.000.000.00
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