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

As of today, Tata Motors Ltd's current share price is $29.80. Tata Motors Ltd's E10 for the quarter that ended in Sep. 2015 was $1.73. Tata Motors Ltd's Shiller P/E Ratio for today is 17.23.

TTM' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.96   Max: 26.61
Current: 17.42

12.96
26.61

During the past 13 years, Tata Motors Ltd's highest Shiller P/E Ratio was 26.61. The lowest was 12.96. And the median was 20.41.

TTM's Shiller P/E Ratio is ranked higher than
71% of the 198 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 27.04 vs. TTM: 17.42 )

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 Sep. 2015 was $-0.096. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.73 for the trailing ten years ended in Sep. 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.

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

Shiller P/E Ratio=Share Price/E10
=29.80/1.73
=17.23

* 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 Mar15 is calculated as:

For example, Tata Motors Ltd's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=-0.0959697249523/237.945*237.945
=-0.096

Current CPI (Sep. 2015) = 237.945.

Tata Motors Ltd Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 0.8541.1930.9871.3880.8290.6240.4210.653-0.0960.775
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 0.8681.2180.9941.3850.8290.6330.4240.651-0.0960.780
201009201012201103201112201203201206201209201212201303201306
per share eps 0.7730.8062.9330.9761.2640.6310.5880.4591.1240.456
CPI 218.439219.179223.467225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 0.8420.8753.1231.0301.3110.6550.6050.4761.1490.465
200803200806200809200812200903200906200909200912201003201006
per share eps 0.5970.1720.178-0.112-3.1070.1910.2680.2342.7580.683
CPI 213.528218.815218.783210.228212.709215.693215.969215.949217.631217.965
Adj_EPS 0.6650.1870.193-0.127-3.4750.2110.2950.2573.0150.746
200509200512200603200606200609200612200703200706200709200712
per share eps 0.2160.2130.1660.2370.2360.2450.2300.2190.2200.225
CPI 198.800196.800199.800202.900202.900201.800205.352208.352208.490210.036
Adj_EPS 0.2590.2580.1980.2780.2760.2890.2660.2500.2510.255

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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ShillerPE 0.000.000.000.000.000.000.000.0020.1024.28

Tata Motors Ltd Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 0.000.0020.1020.0822.9822.4524.2818.6913.0216.63
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