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Discover Financial Services (NYSE:DFS)
Shiller P/E Ratio
16.74 (As of Today)

As of today, Discover Financial Services's current share price is $59.09. Discover Financial Services's E10 for the quarter that ended in Jun. 2016 was $3.53. Discover Financial Services's Shiller P/E Ratio for today is 16.74.

DFS' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.76   Max: 17.2
Current: 16.73

12.76
17.2

During the past 13 years, Discover Financial Services's highest Shiller P/E Ratio was 17.20. The lowest was 12.76. And the median was 15.65.

DFS's Shiller P/E Ratio is ranked lower than
61% of the 38 Companies
in the Global Credit Services industry.

( Industry Median: 13.27 vs. DFS: 16.73 )

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.

Discover Financial Services's adjusted earnings per share data for the three months ended in Jun. 2016 was $1.470. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.53 for the trailing ten years ended in Jun. 2016.


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.

Discover Financial Services's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=59.09/3.53
=16.74

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

Discover Financial Services's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Discover Financial Services's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=1.47/241.038*241.038
=1.470

Current CPI (Jun. 2016) = 241.038.

Discover Financial Services Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 1.3101.3501.3700.8801.2801.3301.3801.1501.3501.470
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 1.3361.3651.3870.9031.3071.3431.3981.1721.3661.470
201108201111201202201205201208201211201303201306201309201312
per share eps 1.1800.9501.1801.0001.2101.0701.3301.2001.2001.240
CPI 226.545226.230227.663229.815230.379230.221232.773233.504234.149233.049
Adj_EPS 1.2551.0121.2491.0491.2661.1201.3771.2391.2351.283
200902200905200908200911201002201005201008201011201102201105
per share eps 0.2500.4301.0700.600-0.2200.3300.4700.6400.8401.090
CPI 212.193213.856215.834216.330216.741218.178218.312218.803221.309225.964
Adj_EPS 0.2840.4851.1950.669-0.2450.3650.5190.7050.9151.163
200608200611200702200705200708200711200802200805200808200811
per share eps 0.5100.0200.4900.4400.420-0.1200.1700.4800.3700.890
CPI 203.900201.500203.499207.949207.917210.177211.693216.632219.086212.425
Adj_EPS 0.6030.0240.5800.5100.487-0.1380.1940.5340.4071.010

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.

Discover Financial Services Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15
ShillerPE 0.000.000.000.000.000.000.000.000.0015.35

Discover Financial Services Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 0.000.000.000.000.000.0015.5115.3514.8215.18
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