As of today (2024-05-07), Covidien's current share price is €94.50. Covidien's E10 for the fiscal year that ended in Sep14 was €2.62. Covidien's Shiller PE Ratio for today is 36.07.
The historical rank and industry rank for Covidien's Shiller PE Ratio or its related term are showing as below:
FRA:6COP'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 17.76 Med: 21.21 Max: 30.88
Current: 30.67
During the past 13 years, Covidien's highest Shiller PE Ratio was 30.88. The lowest was 17.76. And the median was 21.21.
FRA:6COP's Shiller PE Ratio is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 27.32
vs FRA:6COP: 30.67
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.
Covidien's adjusted earnings per share data of for the fiscal year that ended in Sep14 was €2.832. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €2.62 for the trailing ten years ended in Sep14.
Shiller PE for Stocks: The True Measure of Stock Valuation
Covidien Shiller PE Ratio Historical Data
The historical data trend for Covidien'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.
Competitive Comparison of Covidien's Shiller PE Ratio
For the Medical Instruments & Supplies subindustry, Covidien'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.
Covidien's Shiller PE Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Covidien's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Covidien's Shiller PE Ratio falls into.
Covidien 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.
Covidien's Shiller PE Ratio for today is calculated as
* 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.
Covidien's E10 for the fiscal year that ended in Sep14 is calculated as:
For example, Covidien's adjusted earnings per share data for the fiscal year that ended in Sep14 was:
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.
Covidien (FRA:6COP) 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.
Covidien Shiller PE Ratio Related Terms
Thank you for viewing the detailed overview of Covidien's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Covidien PLC formerly known as Covidien Ltd. was incorporated in Bermuda in 2000 as a wholly-owned subsidiary of Tyco International Ltd. In June 2009, Covidien plc announced that one of its subsidiaries has completed the acquisition of VNUS Medical Technologies, Inc. In September 2009, the Company completed the acquisition of Power Medical Interventions Inc. In November 2009, the Company completed the acquisition of Aspect Medical Systems Inc. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Its products are found in almost every hospital in the United States. Its mission is to create and deliver innovative healthcare solutions, developed in ethical collaboration with medical professionals. It operates through two segments: Medical Devices and Medical Supplies. The Medical Devices segment includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products, and other medical products. The Medical Supplies segment includes the development, manufacture and sale of nursing care products, medical surgical products, SharpSafety products and original equipment manufacturer products. Competitors of Medical Devices segment include diversified healthcare companies, such as Johnson & Johnson, Boston Scientific, Baxter and C.R. Bard. Its Nursing Care products include: Curity and Kerlix and Medical Surgical products include: Medi-Trace. The Company holds more than 13,000 patents and have over 10,500 patent applications pending in the United States and in certain other countries that relate to aspects of the technology used in many of its products. The Company is subject to numerous federal, state and local environmental protection and health and safety laws and regulations both within and outside the United States.
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