Switch to:
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

 201104 201107 201110 201201 201204 201207 201210 201301 201304 201307 per share eps 0.49 0.48 0.49 0.427 0.36 0.42 0.27 0.303 0.07 0.12 CPI 224.906 225.922 226.421 226.665 230.085 229.104 231.317 230.28 232.531 233.596 Adj_EPS 0.509 0.496 0.506 0.44 0.365 0.428 0.273 0.307 0.07 0.12 200810 200901 200904 200907 200910 201001 201004 201007 201010 201101 per share eps 0.37 0.18 0.15 0.24 0.17 0.169 0.17 0.28 0.42 0.479 CPI 216.573 211.143 213.24 215.351 216.177 216.687 218.009 218.011 218.711 220.223 Adj_EPS 0.399 0.199 0.164 0.26 0.184 0.182 0.182 0.3 0.449 0.508 200604 200607 200610 200701 200704 200707 200710 200801 200804 200807 per share eps 0.33 0.21 0.27 0.323 0.34 0.33 0.34 0.308 0.38 0.31 CPI 201.5 203.5 201.8 202.416 206.686 208.299 208.936 211.08 214.823 219.964 Adj_EPS 0.383 0.241 0.313 0.373 0.384 0.37 0.38 0.341 0.413 0.329 200310 200401 200404 200407 200410 200501 200504 200507 200510 200601 per share eps 0.26 0.286 0.28 0.31 0.33 0.261 0.37 0.41 0.25 0.427 CPI 185 185.2 188 189.4 190.9 190.7 194.6 195.4 199.2 198.3 Adj_EPS 0.328 0.361 0.348 0.382 0.404 0.32 0.444 0.49 0.293 0.503

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

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

 Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 ShillerPE 45.02 48.54 28.76 22.62 16.04 7.33 10.29 10.33 12.80 9.67

Dell Inc Quarterly Data

 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 ShillerPE 11.82 12.40 11.66 12.80 12.07 8.56 6.63 9.67 10.06 9.72
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)