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Valspar Corp (NYSE:VAL)
Shiller P/E Ratio
35.60 (As of Today)

As of today, Valspar Corp's current share price is $82.60. Valspar Corp's E10 for the quarter that ended in Jan. 2015 was $2.32. Valspar Corp's Shiller P/E Ratio for today is 35.60.

VAL' s 10-Year Shiller P/E Ratio Range
Min: 9.97   Max: 46.19
Current: 35.61

9.97
46.19

During the past 13 years, Valspar Corp's highest Shiller P/E Ratio was 46.19. The lowest was 9.97. And the median was 21.50.

VAL's Shiller P/E Ratiois ranked higher than
74% of the 1593 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.00 vs. VAL: 35.61 )

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.

Valspar Corp's adjusted earnings per share data for the three months ended in Jan. 2015 was $1.249. 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 $2.32 for the trailing six years ended in Jan. 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.

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

Shiller P/E Ratio=Share Price/E10
=82.60/2.32
=35.60

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

Valspar Corp's E10 for the fiscal year that ended in Oct14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=1.24/233.707*235.483
=1.249

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

Current CPI = 235.483.

Valspar Corp Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps 0.7920.6000.8401.0400.7170.6100.9901.1401.2781.240
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433233.707
Adj_EPS 0.8060.6140.8511.0480.7230.6140.9831.1271.2681.249
201004201007201010201101201104201107201110201201201204201207
per share eps 0.6100.7400.5120.3400.5800.700-3.1840.5800.8000.920
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS 0.6590.7990.5510.3640.6070.730-3.3110.6030.8190.946
200904200907200910201001
per share eps 0.2800.6100.4900.340
CPI 213.240215.351216.177216.687
Adj_EPS 0.3090.6670.5340.369

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.

Valspar Corp Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ShillerPE 18.5620.8416.9813.4116.2419.0528.6539.0341.0838.13

Valspar Corp Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 39.0344.1540.1340.8741.0839.8038.5237.3938.1335.97
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