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ABB (ABLZF) Shiller PE Ratio

: 31.47 (As of Today)
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As of today (2024-04-19), ABB's current share price is $49.72. ABB's E10 for the quarter that ended in Dec. 2023 was $1.58. ABB's Shiller PE Ratio for today is 31.47.

The historical rank and industry rank for ABB's Shiller PE Ratio or its related term are showing as below:

ABLZF' s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.15   Med: 20.06   Max: 34.43
Current: 34.29

During the past years, ABB's highest Shiller PE Ratio was 34.43. The lowest was 13.15. And the median was 20.06.

ABLZF's Shiller PE Ratio is ranked worse than
61.25% of 1698 companies
in the Industrial Products industry
Industry Median: 24.875 vs ABLZF: 34.29

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

ABB's adjusted earnings per share data for the three months ended in Dec. 2023 was $0.500. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.58 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


ABB Shiller PE Ratio Historical Data

The historical data trend for ABB's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ABB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.25 21.39 27.62 22.34 27.81

ABB Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 22.34 24.17 26.78 24.83 27.81

Competitive Comparison

For the Electrical Equipment & Parts subindustry, ABB's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


ABB Shiller PE Ratio Distribution

For the Industrial Products industry and Industrials sector, ABB's Shiller PE Ratio distribution charts can be found below:

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



ABB Shiller PE Ratio Calculation

For Shiller PE Ratio, 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 PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

ABB's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=49.72/1.58
=31.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ABB's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, ABB's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.5/106.4611*106.4611
=0.500

Current CPI (Dec. 2023) = 106.4611.

ABB Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.240 101.224 0.252
201406 0.280 101.517 0.294
201409 0.320 101.247 0.336
201412 0.300 100.704 0.317
201503 0.250 100.339 0.265
201506 0.260 100.464 0.276
201509 0.260 99.785 0.277
201512 0.100 99.386 0.107
201603 0.230 99.475 0.246
201606 0.190 100.088 0.202
201609 0.270 99.604 0.289
201612 0.230 99.380 0.246
201703 0.340 100.040 0.362
201706 0.240 100.285 0.255
201709 0.270 100.254 0.287
201712 0.180 100.213 0.191
201803 0.270 100.836 0.285
201806 0.320 101.435 0.336
201809 0.280 101.246 0.294
201812 0.150 100.906 0.158
201903 0.250 101.571 0.262
201906 0.030 102.044 0.031
201909 0.240 101.396 0.252
201912 0.150 101.063 0.158
202003 0.180 101.048 0.190
202006 0.150 100.743 0.159
202009 2.140 100.585 2.265
202012 -0.040 100.241 -0.042
202103 0.250 100.800 0.264
202106 0.370 101.352 0.389
202109 0.320 101.533 0.336
202112 1.330 101.776 1.391
202203 0.310 103.205 0.320
202206 0.200 104.783 0.203
202209 0.190 104.835 0.193
202212 0.600 104.666 0.610
202303 0.560 106.245 0.561
202306 0.490 106.576 0.489
202309 0.470 106.570 0.470
202312 0.500 106.461 0.500

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


ABB  (OTCPK:ABLZF) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio 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 PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio 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, Shiller PE Ratio and PS Ratio will give false valuations.


ABB Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of ABB's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


ABB (ABLZF) Business Description

Address
Affolternstrasse 44, Zurich, CHE, 8050
ABB is a supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation that are sold via approximately 20 business divisions. ABB is the number one or two supplier in two thirds of its product segments.