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Toll Brothers Inc (NYSE:TOL)
Shiller P/E Ratio
54.60 (As of Today)

As of today, Toll Brothers Inc's current share price is $27.30. Toll Brothers Inc's E10 for the quarter that ended in Jan. 2016 was $0.50. Toll Brothers Inc's Shiller P/E Ratio for today is 54.60.

TOL' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 8.1   Max: 66.6
Current: 54.11

8.1
66.6

During the past 13 years, Toll Brothers Inc's highest Shiller P/E Ratio was 66.60. The lowest was 8.10. And the median was 17.65.

TOL's Shiller P/E Ratio is ranked lower than
67% of the 78 Companies
in the Global Residential Construction industry.

( Industry Median: 30.57 vs. TOL: 54.11 )

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.

Toll Brothers Inc's adjusted earnings per share data for the three months ended in Jan. 2016 was $0.400. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.50 for the trailing ten years ended in Jan. 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.

Toll Brothers Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=27.30/0.50
=54.60

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

Toll Brothers Inc's E10 for the fiscal year that ended in Oct15 is calculated as:

For example, Toll Brothers Inc's adjusted earnings per share data for the three months ended in Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=0.4/236.916*236.916
=0.400

Current CPI (Jan. 2016) = 236.916.

Toll Brothers Inc Quarterly Data

201310201401201404201407201410201501201504201507201510201601
per share eps 0.5330.2500.3500.5300.7080.4400.3700.3600.7970.400
CPI 233.546233.916237.072238.250237.433233.707236.599238.654237.838236.916
Adj_EPS 0.5410.2530.3500.5270.7060.4460.3700.3570.7940.400
201104201107201110201201201204201207201210201301201304201307
per share eps -0.1200.2500.090-0.0200.1000.3602.3540.0300.1400.260
CPI 224.906225.922226.421226.665230.085229.104231.317230.280232.531233.596
Adj_EPS -0.1260.2620.094-0.0210.1030.3722.4110.0310.1430.264
200810200901200904200907200910201001201004201007201010201101
per share eps -0.493-0.550-0.520-2.930-0.683-0.250-0.2400.1600.3040.020
CPI 216.573211.143213.240215.351216.177216.687218.009218.011218.711220.223
Adj_EPS -0.539-0.617-0.578-3.223-0.749-0.273-0.2610.1740.3290.022
200604200607200610200701200704200707200710200801200804200807
per share eps 1.0601.0701.0650.3300.2200.160-0.522-0.610-0.590-0.180
CPI 201.500203.500201.800202.416206.686208.299208.936211.080214.823219.964
Adj_EPS 1.2461.2461.2500.3860.2520.182-0.592-0.685-0.651-0.194

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.

Toll Brothers Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ShillerPE 14.1611.2712.5213.4415.1316.3627.9930.6933.2461.79

Toll Brothers Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ShillerPE 30.6934.4232.3931.8133.2438.2142.3553.4461.7954.74
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