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

As of today, Discover Financial Services's current share price is $67.64. Discover Financial Services's E10 for the quarter that ended in Sep. 2016 was $3.65. Discover Financial Services's Shiller P/E Ratio for today is 18.53.

DFS' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.68   Max: 18.74
Current: 18.32

12.68
18.74

During the past 13 years, Discover Financial Services's highest Shiller P/E Ratio was 18.74. The lowest was 12.68. And the median was 15.65.

DFS's Shiller P/E Ratio is ranked lower than
63% of the 43 Companies
in the Global Credit Services industry.

( Industry Median: 14.32 vs. DFS: 18.32 )

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 Sep. 2016 was $1.560. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.65 for the trailing ten years ended in Sep. 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
=67.64/3.65
=18.53

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Discover Financial Services's E10 for the fiscal year that ended in Dec14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=1.56/241.428*241.428
=1.560

Current CPI (Sep. 2016) = 241.428.

Discover Financial Services Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 1.3501.3700.8801.2801.3301.3801.1501.3501.4701.560
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 1.3671.3900.9051.3091.3461.4001.1741.3691.4731.560
201111201202201205201208201211201303201306201309201312201403
per share eps 0.9501.1801.0001.2101.0701.3301.2001.2001.2401.310
CPI 226.230227.663229.815230.379230.221232.773233.504234.149233.049236.293
Adj_EPS 1.0141.2511.0511.2681.1221.3791.2411.2371.2851.338
200905200908200911201002201005201008201011201102201105201108
per share eps 0.4301.0700.600-0.2200.3300.4700.6400.8401.0901.180
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 0.4851.1970.670-0.2450.3650.5200.7060.9161.1651.258
200611200702200705200708200711200802200805200808200811200902
per share eps 0.0200.4900.4400.420-0.1200.1700.4800.3700.8900.250
CPI 201.500203.499207.949207.917210.177211.693216.632219.086212.425212.193
Adj_EPS 0.0240.5810.5110.488-0.1380.1940.5350.4081.0120.284

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 local exchange's currency.

Discover Financial Services Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15
ShillerPE 0.000.000.000.000.000.000.000.000.0015.27

Discover Financial Services Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 0.000.000.000.000.0015.5815.2714.8815.0915.51
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