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Goodyear Tire & Rubber Co (NAS:GT)
Shiller PE Ratio
15.45 (As of Today)

As of today, Goodyear Tire & Rubber Co's current share price is $32.60. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Mar. 2017 was $2.11. Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is 15.45.

GT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.04   Max: 74.64
Current: 15.42

15.04
74.64

During the past 13 years, Goodyear Tire & Rubber Co's highest Shiller P/E Ratio was 74.64. The lowest was 15.04. And the median was 24.02.

GT's Shiller PE Ratio is ranked higher than
73% of the 207 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 28.83 vs. GT: 15.42 )

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.

Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Mar. 2017 was $0.650. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.11 for the trailing ten years ended in Mar. 2017.


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.

Goodyear Tire & Rubber Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=32.60/2.11
=15.45

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

Goodyear Tire & Rubber Co's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=0.65/243.985*243.985
=0.650

Current CPI (Mar. 2017) = 243.985.

Goodyear Tire & Rubber Co Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 7.6300.8200.7000.990-1.4100.6800.7501.1902.1200.650
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 7.9280.8470.7161.015-1.4540.6970.7591.2032.1420.650
201206201209201212201303201306201309201312201403201406201409
per share eps 0.3300.4100.0000.1000.6700.6200.850-0.2300.7600.580
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.3510.4320.0000.1050.7000.6460.890-0.2370.7780.595
200912201003201006201009201012201103201106201109201112201203
per share eps 0.450-0.1900.110-0.080-0.7300.4200.1600.6000.070-0.050
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.508-0.2130.123-0.089-0.8130.4590.1730.6450.076-0.053
200706200709200712200803200806200809200812200903200906200909
per share eps 0.2602.7500.1900.6000.3100.130-1.370-1.380-0.9200.300
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 0.3043.2180.2210.6860.3460.145-1.590-1.583-1.0410.339

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 local exchange's currency.

Goodyear Tire & Rubber Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 0.000.000.000.000.000.0066.1424.1727.9415.99

Goodyear Tire & Rubber Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 24.1721.9523.6522.9527.9427.6219.8422.3015.9917.02
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