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GuruFocus has detected 3 Warning Signs with China Petroleum & Chemical Corp $SNP.
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China Petroleum & Chemical Corp (NYSE:SNP)
Shiller PE Ratio
8.78 (As of Today)

As of today, China Petroleum & Chemical Corp's current share price is $78.75. China Petroleum & Chemical Corp's E10 for the quarter that ended in Sep. 2016 was $8.97. China Petroleum & Chemical Corp's Shiller P/E Ratio for today is 8.78.

SNP' s Shiller PE Ratio Range Over the Past 10 Years
Min: 7.21   Max: 27.1
Current: 9.73

7.21
27.1

During the past 13 years, China Petroleum & Chemical Corp's highest Shiller P/E Ratio was 27.10. The lowest was 7.21. And the median was 9.59.

SNP's Shiller PE Ratio is ranked higher than
88% of the 26 Companies
in the Global Oil & Gas Integrated industry.

( Industry Median: 11.96 vs. SNP: 9.73 )

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.

China Petroleum & Chemical Corp's adjusted earnings per share data for the three months ended in Sep. 2016 was $1.259. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $8.97 for the trailing ten years ended in Sep. 2016.


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.

China Petroleum & Chemical Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=78.75/8.97
=8.78

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

China Petroleum & Chemical Corp's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, China Petroleum & Chemical Corp's adjusted earnings per share data for the three months ended in Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=1.25933255375/241.428*241.428
=1.259

Current CPI (Sep. 2016) = 241.428.

China Petroleum & Chemical Corp Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 2.5202.639-0.7110.2893.1100.2040.7130.8461.6691.259
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 2.5522.677-0.7310.2953.1470.2070.7280.8581.6721.259
201112201203201206201209201212201303201306201309201312201403
per share eps 1.5871.8641.4352.4213.0162.3171.6632.8761.7781.944
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 1.6981.9621.5102.5263.1722.4031.7192.9651.8421.986
200906200909200912201003201006201009201012201103201106201109
per share eps 2.8282.1417.7472.1072.6172.5572.0472.7652.6852.721
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 3.1652.3938.6612.3382.8992.8262.2552.9882.8722.896
200612200703200706200709200712200803200806200809200812200903
per share eps 1.5081.9992.0261.2722.8220.4680.3340.0003.8471.460
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 1.8052.3502.3481.4733.2440.5290.3690.0004.4171.658

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.

China Petroleum & Chemical Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.000.0027.1113.8910.949.657.6611.008.43

China Petroleum & Chemical Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 8.618.7211.0010.9311.537.878.438.107.968.27
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