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Alphabet Inc  (NAS:GOOGL) Shiller PE Ratio: 50.91 (As of Today)

As of today, Alphabet Inc's current share price is $1168.78. Alphabet Inc's E10 for the quarter that ended in Mar. 2019 was $22.96. Alphabet Inc's Shiller P/E Ratio for today is 50.91.

NAS:GOOGL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 41.59   Max: 66.31
Current: 50.92

41.59
66.31

During the past years, Alphabet Inc's highest Shiller P/E Ratio was 66.31. The lowest was 41.59. And the median was 51.28.

NAS:GOOGL's Shiller PE Ratio is ranked lower than
74% of the 47 Companies
in the Global industry.

( Industry Median: 35.63 vs. NAS:GOOGL: 50.92 )

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.

Alphabet Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was $9.500. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $22.96 for the trailing ten years ended in Mar. 2019.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Alphabet Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.09 55.11 47.80 58.83 47.85

Alphabet Inc Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.60 57.13 57.93 47.85 51.27

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Alphabet Inc Distribution

* The bar in red indicates where Alphabet Inc's Shiller PE Ratio falls into.



Calculation

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.

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

Shiller P/E Ratio=Share Price/ E10
=1168.78/22.96
=50.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Alphabet Inc's E10 for the fiscal year that ended in Dec18 is calculated as:

For example, Alphabet Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=9.5/254.202*254.202
=9.500

Current CPI (Mar. 2019) = 254.202.

Alphabet Inc Quarterly Data

per_share_eps CPI Adj_EPS
200906 2.332 215.693 2.748
200909 2.567 215.969 3.021
200912 3.073 215.949 3.617
201003 3.033 217.631 3.543
201006 2.858 217.965 3.333
201009 3.363 218.439 3.914
201012 3.909 219.179 4.534
201103 2.758 223.467 3.137
201106 3.844 225.722 4.329
201109 4.169 226.889 4.671
201112 4.119 225.672 4.640
201203 4.379 229.392 4.853
201206 4.214 229.478 4.668
201209 3.268 231.407 3.590
201212 4.314 229.601 4.776
201303 4.975 232.773 5.433
201306 4.770 233.504 5.193
201309 4.380 234.149 4.755
201312 4.955 233.049 5.405
201403 5.040 236.293 5.422
201406 4.880 238.343 5.205
201409 3.980 238.031 4.250
201412 6.910 234.812 7.481
201503 5.100 236.119 5.491
201506 4.930 238.638 5.252
201509 5.730 237.945 6.121
201512 7.060 236.525 7.588
201603 6.020 238.132 6.426
201606 7.000 241.018 7.383
201609 7.250 241.428 7.634
201612 7.560 241.432 7.960
201703 7.730 243.801 8.060
201706 5.010 244.955 5.199
201709 9.570 246.819 9.856
201712 -4.350 246.524 -4.485
201803 13.330 249.554 13.578
201806 4.540 251.989 4.580
201809 13.060 252.439 13.151
201812 12.770 251.233 12.921
201903 9.500 254.202 9.500

Add all the adjusted EPS together and divide 10 will get our .


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.


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