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Dell Inc (NAS:DELL)
Shiller P/E Ratio
10.66 (As of Today)

As of today, Dell Inc's current share price is $13.86. Dell Inc's E10 for the quarter that ended in Jul. 2013 was $1.30. Dell Inc's Shiller P/E Ratio for today is 10.66.

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Dell Inc's adjusted earnings per share data for the three months ended in Jul. 2013 was $0.120. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.30 for the trailing ten years ended in Jul. 2013.


Definition

For the Shiller P/E, 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 P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Dell Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=13.86/1.30
=10.66

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dell Inc's E10 for the fiscal year that ended in Jan13 is calculated as:

For example, Dell Inc's adjusted earnings per share data for the three months ended in Jul. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Jul. 2013 (Change)*Current CPI (Jul. 2013)
=0.12/233.596*233.596
=0.120

Current CPI (Jul. 2013) = 233.596.

Dell Inc Quarterly Data

201104201107201110201201201204201207201210201301201304201307
per share eps 0.4900.4800.4900.4270.3600.4200.2700.3030.0700.120
CPI 224.906225.922226.421226.665230.085229.104231.317230.280232.531233.596
Adj_EPS 0.5090.4960.5060.4400.3650.4280.2730.3070.0700.120
200810200901200904200907200910201001201004201007201010201101
per share eps 0.3700.1800.1500.2400.1700.1690.1700.2800.4200.479
CPI 216.573211.143213.240215.351216.177216.687218.009218.011218.711220.223
Adj_EPS 0.3990.1990.1640.2600.1840.1820.1820.3000.4490.508
200604200607200610200701200704200707200710200801200804200807
per share eps 0.3300.2100.2700.3230.3400.3300.3400.3080.3800.310
CPI 201.500203.500201.800202.416206.686208.299208.936211.080214.823219.964
Adj_EPS 0.3830.2410.3130.3730.3840.3700.3800.3410.4130.329
200310200401200404200407200410200501200504200507200510200601
per share eps 0.2600.2860.2800.3100.3300.2610.3700.4100.2500.427
CPI 185.000185.200188.000189.400190.900190.700194.600195.400199.200198.300
Adj_EPS 0.3280.3610.3480.3820.4040.3200.4440.4900.2930.503

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E 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 P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E 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, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dell Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
ShillerPE 45.0248.5428.7622.6216.047.3310.2910.3312.809.67

Dell Inc Quarterly Data

Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13
ShillerPE 11.8212.4011.6612.8012.078.566.639.6710.069.72
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