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Sonic Corp (NAS:SONC)
Shiller P/E Ratio
31.95 (As of Today)

As of today, Sonic Corp's current share price is $25.88. Sonic Corp's E10 for the quarter that ended in Nov. 2015 was $0.81. Sonic Corp's Shiller P/E Ratio for today is 31.95.

SONC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 8.82   Max: 53.23
Current: 32

8.82
53.23

During the past 13 years, Sonic Corp's highest Shiller P/E Ratio was 53.23. The lowest was 8.82. And the median was 21.21.

SONC's Shiller P/E Ratio is ranked lower than
64% of the 72 Companies
in the Global Restaurants industry.

( Industry Median: 26.47 vs. SONC: 32.00 )

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.

Sonic Corp's adjusted earnings per share data for the three months ended in Nov. 2015 was $0.240. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.81 for the trailing ten years ended in Nov. 2015.


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.

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

Shiller P/E Ratio=Share Price/E10
=25.88/0.81
=31.95

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

Sonic Corp's E10 for the fiscal year that ended in Aug15 is calculated as:

For example, Sonic Corp's adjusted earnings per share data for the three months ended in Nov. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Nov. 2015 (Change)*Current CPI (Nov. 2015)
=0.24/237.336*237.336
=0.240

Current CPI (Nov. 2015) = 237.336.

Sonic Corp Quarterly Data

201308201311201402201405201408201411201502201505201508201511
per share eps 0.2120.1400.0700.3000.3400.1800.1400.3800.4970.240
CPI 233.877233.069234.781237.900237.852236.151234.722237.805238.316237.336
Adj_EPS 0.2150.1430.0710.2990.3390.1810.1420.3790.4950.240
201102201105201108201111201202201205201208201211201302201305
per share eps 0.070-0.0800.1980.0900.0300.2400.2480.1100.0600.260
CPI 221.309225.964226.545226.230227.663229.815230.379230.221232.166232.945
Adj_EPS 0.075-0.0840.2070.0940.0310.2480.2550.1130.0610.265
200808200811200902200905200908200911201002201005201008201011
per share eps 0.3290.1200.1400.2700.2750.100-0.0100.1800.0750.120
CPI 219.086212.425212.193213.856215.834216.330216.741218.178218.312218.803
Adj_EPS 0.3560.1340.1570.3000.3020.110-0.0110.1960.0820.130
200602200605200608200611200702200705200708200711200802200805
per share eps 0.1400.2700.2920.1900.0900.3100.3350.2200.1500.280
CPI 198.700202.500203.900201.500203.499207.949207.917210.177211.693216.632
Adj_EPS 0.1670.3160.3400.2240.1050.3540.3820.2480.1680.307

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 own currency.

Sonic Corp Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
ShillerPE 40.8636.2520.5515.3710.3612.4012.3520.8826.8633.16

Sonic Corp Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
ShillerPE 20.8826.0126.7526.8926.8635.0241.3937.9933.1635.94
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