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Franklin Resources (FRA:FRK) Shiller PE Ratio : 6.64 (As of Sep. 20, 2024)


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What is Franklin Resources Shiller PE Ratio?

As of today (2024-09-20), Franklin Resources's current share price is €18.315. Franklin Resources's E10 for the quarter that ended in Jun. 2024 was €2.76. Franklin Resources's Shiller PE Ratio for today is 6.64.

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

FRA:FRK' s Shiller PE Ratio Range Over the Past 10 Years
Min: 5.12   Med: 10.4   Max: 22.51
Current: 7

During the past years, Franklin Resources's highest Shiller PE Ratio was 22.51. The lowest was 5.12. And the median was 10.40.

FRA:FRK's Shiller PE Ratio is ranked better than
86.56% of 759 companies
in the Asset Management industry
Industry Median: 12.94 vs FRA:FRK: 7.00

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.

Franklin Resources's adjusted earnings per share data for the three months ended in Jun. 2024 was €0.297. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €2.76 for the trailing ten years ended in Jun. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Franklin Resources Shiller PE Ratio Historical Data

The historical data trend for Franklin Resources'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.

Franklin Resources Shiller PE Ratio Chart

Franklin Resources Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.41 6.74 9.31 6.47 7.74

Franklin Resources 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 8.36 7.74 9.64 9.21 7.50

Competitive Comparison of Franklin Resources's Shiller PE Ratio

For the Asset Management subindustry, Franklin Resources'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.


Franklin Resources's Shiller PE Ratio Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Franklin Resources's Shiller PE Ratio distribution charts can be found below:

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



Franklin Resources 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.

Franklin Resources's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=18.315/2.76
=6.64

* 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.

Franklin Resources's E10 for the quarter that ended in Jun. 2024 is calculated as:

For example, Franklin Resources'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)
=0.297/132.5538*132.5538
=0.297

Current CPI (Jun. 2024) = 132.5538.

Franklin Resources Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201409 0.792 100.428 1.045
201412 0.738 99.070 0.987
201503 0.906 99.621 1.206
201506 0.731 100.684 0.962
201509 0.526 100.392 0.695
201512 0.679 99.792 0.902
201603 0.548 100.470 0.723
201606 0.685 101.688 0.893
201609 0.731 101.861 0.951
201612 0.730 101.863 0.950
201703 0.692 102.862 0.892
201706 0.650 103.349 0.834
201709 0.638 104.136 0.812
201712 -0.896 104.011 -1.142
201803 0.633 105.290 0.797
201806 0.642 106.317 0.800
201809 0.823 106.507 1.024
201812 0.475 105.998 0.594
201903 0.637 107.251 0.787
201906 0.425 108.070 0.521
201909 0.554 108.329 0.678
201912 0.630 108.420 0.770
202003 0.145 108.902 0.176
202006 0.515 108.767 0.628
202009 0.127 109.815 0.153
202012 0.551 109.897 0.665
202103 0.622 111.754 0.738
202106 0.714 114.631 0.826
202109 1.105 115.734 1.266
202112 0.779 117.630 0.878
202203 0.617 121.301 0.674
202206 0.473 125.017 0.502
202209 0.465 125.227 0.492
202212 0.302 125.222 0.320
202303 0.355 127.348 0.370
202306 0.406 128.729 0.418
202309 0.543 129.860 0.554
202312 0.458 129.419 0.469
202403 0.212 131.776 0.213
202406 0.297 132.554 0.297

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.


Franklin Resources  (FRA:FRK) 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.


Franklin Resources Shiller PE Ratio Related Terms

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


Franklin Resources Business Description

Traded in Other Exchanges
Address
One Franklin Parkway, San Mateo, CA, USA, 94403
Franklin Resources provides investment services for individual and institutional investors. At the end of October 2023, Franklin had $1.335 trillion in managed assets, composed primarily of equity (31%), fixed-income (35%), multi-asset/balanced (11%) funds, alternatives (19%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (50% of AUM) and institutional accounts (48%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the U.S.-based asset managers we cover, with more than a third of its assets under management invested in global/international strategies and 29% of managed assets sourced from clients domiciled outside the United States.

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