GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Smith & Nephew PLC (FRA:NPW1) » Definitions » Shiller PE Ratio

Smith & Nephew (FRA:NPW1) Shiller PE Ratio : 19.70 (As of Dec. 14, 2024)


View and export this data going back to 2000. Start your Free Trial

What is Smith & Nephew Shiller PE Ratio?

As of today (2024-12-14), Smith & Nephew's current share price is €12.015. Smith & Nephew's E10 for the fiscal year that ended in Dec23 was €0.61. Smith & Nephew's Shiller PE Ratio for today is 19.70.

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

FRA:NPW1' s Shiller PE Ratio Range Over the Past 10 Years
Min: 16.6   Med: 28.95   Max: 39.53
Current: 18.57

During the past 13 years, Smith & Nephew's highest Shiller PE Ratio was 39.53. The lowest was 16.60. And the median was 28.95.

FRA:NPW1's Shiller PE Ratio is ranked better than
69.32% of 264 companies
in the Medical Devices & Instruments industry
Industry Median: 29.505 vs FRA:NPW1: 18.57

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.

Smith & Nephew's adjusted earnings per share data of for the fiscal year that ended in Dec23 was €0.276. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €0.61 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Smith & Nephew Shiller PE Ratio Historical Data

The historical data trend for Smith & Nephew'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.

Smith & Nephew Shiller PE Ratio Chart

Smith & Nephew Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.08 29.50 24.32 20.62 20.16

Smith & Nephew Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Shiller PE Ratio Get a 7-Day Free Trial 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 - 20.62 - 20.16 -

Competitive Comparison of Smith & Nephew's Shiller PE Ratio

For the Medical Devices subindustry, Smith & Nephew'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.


Smith & Nephew's Shiller PE Ratio Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Smith & Nephew's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Smith & Nephew's Shiller PE Ratio falls into.



Smith & Nephew 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.

Smith & Nephew's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=12.015/0.61
=19.70

* 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.

Smith & Nephew's E10 for the fiscal year that ended in Dec23 is calculated as:

For example, Smith & Nephew's adjusted earnings per share data for the fiscal year that ended in Dec23 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec23 (Change)*Current CPI (Dec23)
=0.276/130.5000*130.5000
=0.276

Current CPI (Dec23) = 130.5000.

Smith & Nephew Annual Data

Earnings per Share (Diluted) CPI Adj_EPS
201412 0.452 99.900 0.590
201512 0.419 100.400 0.545
201612 0.832 102.200 1.062
201712 0.741 105.000 0.921
201812 0.665 107.100 0.810
201912 0.616 108.500 0.741
202012 0.421 109.400 0.502
202112 0.528 114.700 0.601
202212 0.241 125.300 0.251
202312 0.276 130.500 0.276

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.


Smith & Nephew  (FRA:NPW1) 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.


Smith & Nephew Shiller PE Ratio Related Terms

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


Smith & Nephew Business Description

Address
Hatters Lane, Building 5, Croxley Park, Watford, Hertfordshire, GBR, WD18 8YE
Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound care solutions. Roughly 41% of the UK-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Over half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder.

Smith & Nephew Headlines

No Headlines