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Tata Motors Ltd (NYSE:TTM)
Shiller P/E Ratio
22.41 (As of Today)

As of today, Tata Motors Ltd's current share price is $39.89. Tata Motors Ltd's E10 for the quarter that ended in Mar. 2016 was $1.78. Tata Motors Ltd's Shiller P/E Ratio for today is 22.41.

TTM' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 13.27   Max: 22.16
Current: 22.21

13.27
22.16

During the past 13 years, Tata Motors Ltd's highest Shiller P/E Ratio was 22.16. The lowest was 13.27. And the median was 17.26.

TTM's Shiller P/E Ratio is ranked higher than
64% of the 200 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 29.55 vs. TTM: 22.21 )

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.

Tata Motors Ltd's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.829. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.78 for the trailing ten years ended in Mar. 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.

Tata Motors Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=39.89/1.78
=22.41

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

Tata Motors Ltd's E10 for the fiscal year that ended in Mar16 is calculated as:

For example, Tata Motors Ltd's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.828961787029/238.132*238.132
=0.829

Current CPI (Mar. 2016) = 238.132.

Tata Motors Ltd Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.9871.3880.8290.6240.4210.653-0.0960.7750.8290.488
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.9951.3870.8300.6330.4250.652-0.0960.7800.8290.482
201103201112201203201206201209201212201303201306201309201312
per share eps 2.9330.9761.2640.6310.5880.4591.1240.4560.8541.193
CPI 223.467225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 3.1261.0301.3120.6550.6050.4761.1500.4650.8691.219
200706200709200712200803200903200912201003201006201009201012
per share eps 0.2190.2200.2250.577-3.1070.2341.4260.6830.7730.806
CPI 208.352208.490210.036213.528212.709215.949217.631217.965218.439219.179
Adj_EPS 0.2500.2520.2550.644-3.4780.2581.5600.7470.8420.876
200412200503200506200509200512200603200606200609200612200703
per share eps 0.1930.2820.2150.2160.2130.1790.2370.2360.2450.240
CPI 190.300193.300194.500198.800196.800199.800202.900202.900201.800205.352
Adj_EPS 0.2410.3470.2640.2590.2580.2140.2790.2760.2890.279

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.

Tata Motors Ltd Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
ShillerPE 0.000.000.000.000.000.000.000.000.0016.31

Tata Motors Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 0.000.000.000.000.0019.2113.3917.3916.310.00
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