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ABB (OSTO:ABB) Shiller PE Ratio : 37.13 (As of Jun. 25, 2024)


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What is ABB Shiller PE Ratio?

As of today (2024-06-25), ABB's current share price is kr600.80. ABB's E10 for the quarter that ended in Mar. 2024 was kr16.18. ABB's Shiller PE Ratio for today is 37.13.

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

OSTO:ABB' s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.15   Med: 20.06   Max: 36.82
Current: 36.25

During the past years, ABB's highest Shiller PE Ratio was 36.82. The lowest was 13.15. And the median was 20.06.

OSTO:ABB's Shiller PE Ratio is ranked worse than
67.36% of 1768 companies
in the Industrial Products industry
Industry Median: 24.32 vs OSTO:ABB: 36.25

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 Mar. 2024 was kr5.102. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is kr16.18 for the trailing ten years ended in Mar. 2024.

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 Shiller PE Ratio Chart

ABB 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 22.25 21.39 27.62 22.34 27.81

ABB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 24.17 26.78 24.83 27.81 30.50

Competitive Comparison of ABB's Shiller PE Ratio

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's Shiller PE Ratio Distribution in the Industrial Products Industry

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
=600.80/16.18
=37.13

* 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 Mar. 2024 is calculated as:

For example, ABB's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=5.102/107.3549*107.3549
=5.102

Current CPI (Mar. 2024) = 107.3549.

ABB Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 1.872 101.517 1.980
201409 2.282 101.247 2.420
201412 2.289 100.704 2.440
201503 2.136 100.339 2.285
201506 2.149 100.464 2.296
201509 2.175 99.785 2.340
201512 0.849 99.386 0.917
201603 1.918 99.475 2.070
201606 1.578 100.088 1.693
201609 2.303 99.604 2.482
201612 2.118 99.380 2.288
201703 3.031 100.040 3.253
201706 2.083 100.285 2.230
201709 2.163 100.254 2.316
201712 1.511 100.213 1.619
201803 2.225 100.836 2.369
201806 2.816 101.435 2.980
201809 2.503 101.246 2.654
201812 1.355 100.906 1.442
201903 2.323 101.571 2.455
201906 0.282 102.044 0.297
201909 2.330 101.396 2.467
201912 1.415 101.063 1.503
202003 1.772 101.048 1.883
202006 1.397 100.743 1.489
202009 18.951 100.585 20.227
202012 -0.335 100.241 -0.359
202103 2.136 100.800 2.275
202106 3.107 101.352 3.291
202109 2.766 101.533 2.925
202112 12.089 101.776 12.752
202203 2.965 103.205 3.084
202206 2.007 104.783 2.056
202209 2.073 104.835 2.123
202212 6.227 104.666 6.387
202303 5.867 106.245 5.928
202306 5.277 106.576 5.316
202309 5.210 106.570 5.248
202312 5.129 106.461 5.172
202403 5.102 107.355 5.102

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  (OSTO:ABB) 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 (OSTO:ABB) 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.

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