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Sanofi (NYSE:SNY)
Shiller P/E Ratio
22.12 (As of Today)

As of today, Sanofi's current share price is $51.75. Sanofi's E10 for the quarter that ended in Dec. 2014 was $2.34. Sanofi's Shiller P/E Ratio for today is 22.12.

SNY' s 10-Year Shiller P/E Ratio Range
Min: 11.39   Max: 25.45
Current: 25.1

11.39
25.45

During the past 13 years, Sanofi's highest Shiller P/E Ratio was 25.45. The lowest was 11.39. And the median was 16.55.

SNY's Shiller P/E Ratiois ranked higher than
92% of the 1267 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.00 vs. SNY: 25.10 )

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.

Sanofi's adjusted earnings per share data for the three months ended in Dec. 2014 was $0.604. 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 $2.34 for the trailing six years ended in Dec. 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.

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

Shiller P/E Ratio=Share Price/E10
=51.75/2.34
=22.12

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

Sanofi's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Sanofi's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.599260172626/234.812*236.818
=0.604

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

Current CPI = 236.818.

Sanofi Quarterly Data

201006201012201106201112201206201212201306201312201406201412
per share eps 0.7960.2180.5550.6790.5520.1900.2240.5490.3910.599
CPI 217.965219.179225.722225.672229.478229.601233.504233.049238.343234.812
Adj_EPS 0.8650.2360.5820.7120.5700.1960.2270.5580.3890.604
200506200512200606200612200706200712200806200812200906200912
per share eps 0.2460.1960.3990.3960.6580.6890.692-0.7800.5670.672
CPI 194.500196.800202.900201.800208.352210.036218.815210.228215.693215.949
Adj_EPS 0.2990.2360.4650.4650.7480.7760.749-0.8780.6230.737
200306200312200406200412
per share eps 0.3900.4320.4951.062
CPI 183.700184.300189.700190.300
Adj_EPS 0.5020.5550.6171.321

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.

Sanofi Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 0.000.0019.8515.6817.9214.6215.6519.2021.8119.51

Sanofi Quarterly Data

Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14
ShillerPE 16.1714.6216.4715.6516.1319.2022.0821.8121.2719.51
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