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Schweitzer-Mauduit International, Inc. (NYSE:SWM)
Shiller P/E Ratio
18.63 (As of Today)

As of today, Schweitzer-Mauduit International, Inc.'s current share price is $40.62. Schweitzer-Mauduit International, Inc.'s E10 for the quarter that ended in Sep. 2014 was $2.18. Schweitzer-Mauduit International, Inc.'s Shiller P/E Ratio for today is 18.63.

SWM' s 10-Year Shiller P/E Ratio Range
Min: 8.3   Max: 73.73
Current: 18.6

8.3
73.73

During the past 13 years, Schweitzer-Mauduit International, Inc.'s highest Shiller P/E Ratio was 73.73. The lowest was 8.30. And the median was 19.02.

SWM's Shiller P/E Ratiois ranked higher than
87% of the 425 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 9999.00 vs. SWM: 18.60 )

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.

Schweitzer-Mauduit International, Inc.'s adjusted earnings per share data for the three months ended in Sep. 2014 was $0.752. 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 $2.18 for the trailing six years ended in Sep. 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.

Schweitzer-Mauduit International, Inc.'s Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=40.62/2.18
=18.63

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

Schweitzer-Mauduit International, Inc.'s E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Schweitzer-Mauduit International, Inc.'s adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.76/238.031*235.51
=0.752

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

Current CPI = 235.51.

Schweitzer-Mauduit International, Inc. Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.6600.8700.5320.9600.8400.920-0.3120.7500.8100.760
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6770.8850.5460.9710.8470.925-0.3150.7480.8000.752
200912201003201006201009201012201103201106201109201112201203
per share eps 0.3060.5100.3900.4900.3830.4550.5700.2901.4770.450
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.3340.5520.4210.5280.4120.4800.5950.3011.5410.462
200812200903200906200909
per share eps -0.2240.4350.2250.135
CPI 210.228212.709215.693215.969
Adj_EPS -0.2510.4820.2460.147

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.

Schweitzer-Mauduit International, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 15.8412.1415.0517.0118.0465.1450.8233.8327.6028.24

Schweitzer-Mauduit International, Inc. Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 29.7725.1627.6024.5729.1532.0428.2421.5820.8219.04
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