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Walt Disney Co (NYSE:DIS)
Shiller P/E Ratio
36.28 (As of Today)

As of today, Walt Disney Co's current share price is $111.03. Walt Disney Co's E10 for the quarter that ended in Dec. 2014 was $3.06. Walt Disney Co's Shiller P/E Ratio for today is 36.28.

DIS' s 10-Year Shiller P/E Ratio Range
Min: 9.37   Max: 37.88
Current: 36.3

9.37
37.88

During the past 13 years, Walt Disney Co's highest Shiller P/E Ratio was 37.88. The lowest was 9.37. And the median was 24.13.

DIS's Shiller P/E Ratiois ranked higher than
86% of the 744 Companies
in the Global Media - Diversified industry.

( Industry Median: 0.00 vs. DIS: 36.30 )

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.

Walt Disney Co's adjusted earnings per share data for the three months ended in Dec. 2014 was $1.281. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $3.06 for the trailing six years ended in Dec. 2014.


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.

Walt Disney Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=111.03/3.06
=36.28

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

Walt Disney Co's E10 for the fiscal year that ended in Sep14 is calculated as:

For example, Walt Disney Co's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=1.27/234.812*236.818
=1.281

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.818.

Walt Disney Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.6840.7700.8301.0100.7731.0301.0801.2800.8641.270
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.7000.7940.8441.0240.7821.0471.0821.2720.8601.281
201003201006201009201012201103201106201109201112201203201206
per share eps 0.4800.6700.4310.6800.4900.7700.5830.8000.6301.010
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.5220.7280.4670.7350.5190.8080.6090.8400.6501.042
200903200906200909200912
per share eps 0.3300.5100.4740.440
CPI 212.709215.693215.969215.949
Adj_EPS 0.3670.5600.5200.483

Add all the adjusted EPS together and divide 6 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.

Walt Disney Co Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ShillerPE 27.1333.8726.4818.8015.3716.9913.6121.1524.4329.79

Walt Disney Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 21.1520.5222.6624.3624.4328.6228.6529.4029.7930.81
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