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Sappi (JSE:SAP) Shiller PE Ratio : 7.74 (As of May. 01, 2024)


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What is Sappi Shiller PE Ratio?

As of today (2024-05-01), Sappi's current share price is R50.76. Sappi's E10 for the quarter that ended in Dec. 2023 was R6.56. Sappi's Shiller PE Ratio for today is 7.74.

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

JSE:SAP' s Shiller PE Ratio Range Over the Past 10 Years
Min: 5.1   Med: 16.33   Max: 739
Current: 7.78

During the past years, Sappi's highest Shiller PE Ratio was 739.00. The lowest was 5.10. And the median was 16.33.

JSE:SAP's Shiller PE Ratio is ranked better than
79.47% of 190 companies
in the Forest Products industry
Industry Median: 12.76 vs JSE:SAP: 7.78

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.

Sappi's adjusted earnings per share data for the three months ended in Dec. 2023 was R-4.286. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is R6.56 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sappi Shiller PE Ratio Historical Data

The historical data trend for Sappi'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.

Sappi Shiller PE Ratio Chart

Sappi 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 10.56 8.58 10.51 8.31 6.31

Sappi Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 8.38 7.41 5.99 6.31 6.74

Competitive Comparison of Sappi's Shiller PE Ratio

For the Paper & Paper Products subindustry, Sappi'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.


Sappi's Shiller PE Ratio Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sappi's Shiller PE Ratio distribution charts can be found below:

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



Sappi 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.

Sappi's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=50.76/6.56
=7.74

* 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.

Sappi's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Sappi's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-4.286/152.7175*152.7175
=-4.286

Current CPI (Dec. 2023) = 152.7175.

Sappi Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.645 94.723 1.040
201406 0.320 95.813 0.510
201409 1.429 96.794 2.255
201412 0.575 96.794 0.907
201503 1.330 98.538 2.061
201506 0.123 100.173 0.188
201509 2.046 101.154 3.089
201512 2.100 101.808 3.150
201603 2.768 104.969 4.027
201606 0.903 106.713 1.292
201609 2.946 107.694 4.178
201612 2.352 109.002 3.295
201703 2.067 111.400 2.834
201706 1.418 112.054 1.933
201709 2.502 112.926 3.384
201712 1.440 113.907 1.931
201803 2.250 115.542 2.974
201806 1.198 116.959 1.564
201809 2.950 118.376 3.806
201812 2.139 118.921 2.747
201903 1.870 120.774 2.365
201906 0.146 122.191 0.182
201909 1.334 123.281 1.653
201912 0.576 123.717 0.711
202003 0.061 125.679 0.074
202006 -2.227 124.807 -2.725
202009 -2.677 126.878 -3.222
202012 -0.446 127.467 -0.534
202103 -0.599 129.628 -0.706
202106 0.417 131.113 0.486
202109 0.875 133.273 1.003
202112 3.178 135.029 3.594
202203 4.787 137.594 5.313
202206 5.219 140.835 5.659
202209 0.704 143.671 0.748
202212 5.530 145.156 5.818
202303 2.191 147.586 2.267
202306 1.312 148.802 1.347
202309 -1.328 151.502 -1.339
202312 -4.286 152.718 -4.286

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.


Sappi  (JSE:SAP) 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.


Sappi Shiller PE Ratio Related Terms

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


Sappi (JSE:SAP) Business Description

Traded in Other Exchanges
Address
108 Oxford Road, Rosebank, Houghton Estate, Johannesburg, GT, ZAF, 2198
Sappi Ltd produces and sells a variety of paper and paper-related products. The products and services include Dissolving pulp, Graphic papers, Packaging and speciality papers, Casting and release papers, Biomaterials and Bio-energy. The company organizes itself into three primary segments based on geography: North America, Europe, and Southern Africa. More of the revenue comes from Europe than any other geography.