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Shire PLC (NAS:SHPG)
Shiller P/E Ratio
46.44 (As of Today)

As of today, Shire PLC's current share price is $163.95. Shire PLC's E10 for the quarter that ended in Sep. 2016 was $3.53. Shire PLC's Shiller P/E Ratio for today is 46.44.

SHPG' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 43.42   Max: 469
Current: 53.48

43.42
469

During the past 13 years, Shire PLC's highest Shiller P/E Ratio was 469.00. The lowest was 43.42. And the median was 106.17.

SHPG's Shiller P/E Ratio is ranked lower than
53% of the 58 Companies
in the Global Biotechnology industry.

( Industry Median: 48.79 vs. SHPG: 53.48 )

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.

Shire PLC's adjusted earnings per share data of for the fiscal year that ended in Dec15 was $6.591. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.53 for the trailing ten years ended in Dec15.


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.

Shire PLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=163.95/3.53
=46.44

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Shire PLC's E10 for the quarter that ended in Sep. 2016 is calculated as:

For example, Shire PLC's adjusted earnings per share data for the fiscal year that ended in Dec15 was:

Adj_EPS=Earnigns per Share/CPI of Dec15 (Change)*Current CPI (Dec15)
=6.591/236.525*236.525
=6.591

Current CPI (Dec15) = 236.525.

Shire PLC Annual Data

200612200712200812200912201012201112201212201312201412201512
per share eps 1.638-8.10.8582.6913.1594.7093.9273.52517.2806.591
CPI 201.800210.036210.228215.949219.179225.672229.601233.049234.812236.525
Adj_EPS 1.920-9.0780.9652.9473.4094.9354.0453.57817.4066.591

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

Shire PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.000.00448.18201.87133.6687.64111.9277.5057.84

Shire PLC Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 142.42148.3677.5084.5279.1758.4757.8446.3754.8462.26
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