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Check Point Software Technologies (FRA:CPW) Shiller PE Ratio : 24.23 (As of May. 02, 2024)


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What is Check Point Software Technologies Shiller PE Ratio?

As of today (2024-05-02), Check Point Software Technologies's current share price is €140.05. Check Point Software Technologies's E10 for the quarter that ended in Mar. 2024 was €5.78. Check Point Software Technologies's Shiller PE Ratio for today is 24.23.

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

FRA:CPW' s Shiller PE Ratio Range Over the Past 10 Years
Min: 20.02   Med: 29.85   Max: 39.02
Current: 24.13

During the past years, Check Point Software Technologies's highest Shiller PE Ratio was 39.02. The lowest was 20.02. And the median was 29.85.

FRA:CPW's Shiller PE Ratio is ranked better than
63% of 908 companies
in the Software industry
Industry Median: 31.3 vs FRA:CPW: 24.13

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.

Check Point Software Technologies's adjusted earnings per share data for the three months ended in Mar. 2024 was €1.472. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €5.78 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Check Point Software Technologies Shiller PE Ratio Historical Data

The historical data trend for Check Point Software Technologies'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.

Check Point Software Technologies Shiller PE Ratio Chart

Check Point Software Technologies 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 27.48 29.93 23.04 22.37 24.99

Check Point Software Technologies 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 22.44 21.20 22.03 24.99 26.57

Competitive Comparison of Check Point Software Technologies's Shiller PE Ratio

For the Software - Infrastructure subindustry, Check Point Software Technologies'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.


Check Point Software Technologies's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Check Point Software Technologies's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Check Point Software Technologies's Shiller PE Ratio falls into.



Check Point Software Technologies 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.

Check Point Software Technologies's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=140.05/5.78
=24.23

* 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.

Check Point Software Technologies's E10 for the quarter that ended in Mar. 2024 is calculated as:

For example, Check Point Software Technologies'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)
=1.472/129.4194*129.4194
=1.472

Current CPI (Mar. 2024) = 129.4194.

Check Point Software Technologies Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.611 100.560 0.786
201409 0.652 100.428 0.840
201412 0.795 99.070 1.039
201503 0.795 99.621 1.033
201506 0.784 100.684 1.008
201509 0.820 100.392 1.057
201512 0.991 99.792 1.285
201603 0.853 100.470 1.099
201606 0.846 101.688 1.077
201609 0.882 101.861 1.121
201612 1.242 101.863 1.578
201703 1.010 102.862 1.271
201706 0.997 103.349 1.248
201709 0.973 104.136 1.209
201712 1.234 104.011 1.535
201803 0.941 105.290 1.157
201806 1.061 106.317 1.292
201809 1.071 106.507 1.301
201812 1.327 105.998 1.620
201903 1.018 107.251 1.228
201906 1.071 108.070 1.283
201909 1.135 108.329 1.356
201912 1.656 108.420 1.977
202003 1.113 108.902 1.323
202006 1.225 108.767 1.458
202009 1.206 109.815 1.421
202012 1.603 109.897 1.888
202103 1.117 111.754 1.294
202106 1.145 114.631 1.293
202109 1.190 115.734 1.331
202112 1.752 117.630 1.928
202203 1.180 121.301 1.259
202206 1.287 125.017 1.332
202209 1.485 125.227 1.535
202212 2.077 125.222 2.147
202303 1.420 127.348 1.443
202306 1.569 128.729 1.577
202309 1.640 129.860 1.634
202312 1.972 129.419 1.972
202403 1.472 129.419 1.472

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.


Check Point Software Technologies  (FRA:CPW) 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.


Check Point Software Technologies Shiller PE Ratio Related Terms

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


Check Point Software Technologies (FRA:CPW) Business Description

Traded in Other Exchanges
Address
5 Shlomo Kaplan Street, Tel Aviv, ISR, 6789159
Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.

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