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W W Grainger Inc (NYSE:GWW)
Shiller P/E Ratio
28.00 (As of Today)

As of today, W W Grainger Inc's current share price is $252.76. W W Grainger Inc's E10 for the quarter that ended in Jun. 2014 was $9.06. W W Grainger Inc's Shiller P/E Ratio for today is 28.00.

GWW' s 10-Year Shiller P/E Ratio Range
Min: 13.9   Max: 34.02
Current: 28

13.9
34.02

During the past 13 years, W W Grainger Inc's highest Shiller P/E Ratio was 34.02. The lowest was 13.90. And the median was 23.97.

GWW's Shiller P/E Ratiois ranked higher than
75% of the 257 Companies
in the Global Industrial Distribution industry.

( Industry Median: 78.19 vs. GWW: 28.00 )

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.

W W Grainger Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was $2.937. 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 $9.06 for the trailing six years ended in Jun. 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.

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

Shiller P/E Ratio=Share Price/E10
=252.76/9.06
=27.90

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

W W Grainger Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, W W Grainger Inc's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=2.94/238.343*238.064
=2.937

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.064.

W W Grainger Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 2.5702.6302.1502.2072.9403.0302.9502.2333.0702.940
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 2.6672.7282.2122.2883.0073.0892.9992.2813.0932.937
200909200912201003201006201009201012201103201106201109201112
per share eps 1.8801.3001.3101.7302.0601.8722.1802.3402.5102.080
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 2.0721.4331.4331.8902.2452.0332.3222.4682.6342.194
200809200812200903200906
per share eps 1.7901.4221.2501.210
CPI 218.783210.228212.709215.693
Adj_EPS 1.9481.6101.3991.335

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.

W W Grainger Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 27.0925.4222.0423.1518.4019.9125.2628.9227.6330.39

W W Grainger Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 31.6627.1928.7827.6329.0831.4631.6530.3928.9228.09
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