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ABB (FRA:ABJA) Shiller PE Ratio : 34.33 (As of Oct. 09, 2024)


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What is ABB Shiller PE Ratio?

As of today (2024-10-09), ABB's current share price is €51.50. ABB's E10 for the quarter that ended in Jun. 2024 was €1.50. ABB's Shiller PE Ratio for today is 34.33.

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

FRA:ABJA' s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.15   Med: 20.1   Max: 36.82
Current: 34.85

During the past years, ABB's highest Shiller PE Ratio was 36.82. The lowest was 13.15. And the median was 20.10.

FRA:ABJA's Shiller PE Ratio is ranked worse than
62.39% of 1659 companies
in the Industrial Products industry
Industry Median: 25.98 vs FRA:ABJA: 34.85

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 Jun. 2024 was €0.548. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €1.50 for the trailing ten years ended in Jun. 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 27.83

ABB Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 26.80 24.85 27.83 30.52 35.49

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
=51.50/1.5
=34.33

* 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 Jun. 2024 is calculated as:

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=0.548/107.9909*107.9909
=0.548

Current CPI (Jun. 2024) = 107.9909.

ABB Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201409 0.248 101.247 0.265
201412 0.243 100.704 0.261
201503 0.231 100.339 0.249
201506 0.232 100.464 0.249
201509 0.232 99.785 0.251
201512 0.092 99.386 0.100
201603 0.207 99.475 0.225
201606 0.169 100.088 0.182
201609 0.241 99.604 0.261
201612 0.218 99.380 0.237
201703 0.318 100.040 0.343
201706 0.214 100.285 0.230
201709 0.227 100.254 0.245
201712 0.152 100.213 0.164
201803 0.219 100.836 0.235
201806 0.274 101.435 0.292
201809 0.240 101.246 0.256
201812 0.132 100.906 0.141
201903 0.221 101.571 0.235
201906 0.027 102.044 0.029
201909 0.218 101.396 0.232
201912 0.135 101.063 0.144
202003 0.163 101.048 0.174
202006 0.133 100.743 0.143
202009 1.817 100.585 1.951
202012 -0.033 100.241 -0.036
202103 0.210 100.800 0.225
202106 0.307 101.352 0.327
202109 0.272 101.533 0.289
202112 1.177 101.776 1.249
202203 0.281 103.205 0.294
202206 0.189 104.783 0.195
202209 0.192 104.835 0.198
202212 0.566 104.666 0.584
202303 0.523 106.245 0.532
202306 0.443 106.576 0.449
202309 0.440 106.570 0.446
202312 0.458 106.461 0.465
202403 0.451 107.355 0.454
202406 0.548 107.991 0.548

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  (FRA:ABJA) 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 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 19 business divisions. ABB is the number one or two supplier in two thirds of its product segments.

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