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ShangPharma Corp (NYSE:SHP)
Shiller P/E Ratio
(As of Today)

As of today, ShangPharma Corp's current share price is $0.00. ShangPharma Corp's E10 for the quarter that ended in Sep. 2012 was $0.00. ShangPharma Corp's Shiller P/E Ratio for today is .

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

SHP's Shiller P/E Ratiois ranked lower than
60% of the 1337 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. SHP: 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.

ShangPharma Corp's adjusted earnings per share data for the three months ended in Sep. 2012 was $0.073. 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 $0.00 for the trailing six years ended in Sep. 2012.


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.

ShangPharma Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=0.00/0.00
=

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

ShangPharma Corp's E10 for the fiscal year that ended in Dec11 is calculated as:

For example, ShangPharma Corp's adjusted earnings per share data for the three months ended in Sep. 2012 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2012*CPI of Current
=0.072/231.407*235.51
=0.073

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

Current CPI = 235.51.

ShangPharma Corp does not have a history long enough to calculate E10. Therefore GuruFocus does not calculate it.


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.

ShangPharma Corp Annual Data

Dec08Dec09Dec10Dec11
ShillerPE 0.000.000.000.000.000.000.000.000.000.00

ShangPharma Corp Quarterly Data

Dec09Jun10Sep10Dec10Mar11Sep11Dec11Mar12Jun12Sep12
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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