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Coca-Cola Co (NYSE:KO)
Shiller PE Ratio
24.14 (As of Today)

As of today, Coca-Cola Co's current share price is $44.18. Coca-Cola Co's E10 for the quarter that ended in Mar. 2017 was $1.83. Coca-Cola Co's Shiller P/E Ratio for today is 24.14.

KO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 19.75   Max: 33.95
Current: 24.15

19.75
33.95

During the past 13 years, Coca-Cola Co's highest Shiller P/E Ratio was 33.95. The lowest was 19.75. And the median was 24.47.

KO's Shiller PE Ratio is ranked higher than
74% of the 19 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 27.56 vs. KO: 24.15 )

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.

Coca-Cola Co's adjusted earnings per share data for the three months ended in Mar. 2017 was $0.270. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.83 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.

Coca-Cola Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=44.18/1.83
=24.14

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

Coca-Cola Co's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Coca-Cola 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)
=0.27/243.985*243.985
=0.270

Current CPI (Mar. 2017) = 243.985.

Coca-Cola Co Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 0.1800.3500.7100.3300.2800.3400.7900.2400.1200.270
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 0.1870.3620.7260.3380.2890.3480.8000.2430.1210.270
201206201209201212201303201306201309201312201403201406201409
per share eps 0.6100.5000.4100.3900.5900.5400.3800.3600.5800.480
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6490.5270.4360.4090.6160.5630.3980.3720.5940.492
200912201003201006201009201012201103201106201109201112201203
per share eps 0.3300.3450.5100.4401.2350.4100.6000.4800.3600.450
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.3730.3870.5710.4911.3750.4480.6490.5160.3890.479
200706200709200712200803200806200809200812200903200906200909
per share eps 0.4000.3550.2600.3200.3050.4050.2150.2900.4400.405
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 0.4680.4150.3020.3660.3400.4520.2500.3330.4980.458

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.

Coca-Cola Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 32.5923.3126.3825.3424.6823.2425.0024.8024.4022.60

Coca-Cola Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 24.8023.4622.1422.8624.4026.2524.7123.2322.6023.20
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