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

As of today, W W Grainger Inc's current share price is $240.03. W W Grainger Inc's E10 for the quarter that ended in Mar. 2014 was $8.76. W W Grainger Inc's Shiller P/E Ratio for today is 27.50.

GWW' s 10-Year Shiller P/E Ratio Range
Min: 13.87   Max: 34.25
Current: 27.5

13.87
34.25

During the past 13 years, W W Grainger Inc's highest Shiller P/E Ratio was 34.25. The lowest was 13.87. And the median was 23.85.

GWW's Shiller P/E Ratiois ranked higher than
81% of the 256 Companies
in the Global Industrial Distribution industry.

( Industry Median: 9999.00 vs. GWW: 27.50 )

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 Mar. 2014 was $3.102. 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 $8.76 for the trailing six years ended in Mar. 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
=240.03/8.76
=27.40

* 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 Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=3.07/236.293*238.786
=3.102

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

Current CPI = 238.786.

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 2.6752.7372.2192.2953.0163.0993.0082.2883.1022.945
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 2.0791.4371.4371.8952.2522.0392.3292.4752.6422.201
200809200812200903200906
per share eps 1.7901.3881.2501.210
CPI 218.783210.228212.709215.693
Adj_EPS 1.9541.5771.4031.340

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 27.0025.3521.9623.2418.5120.0225.1529.0727.5430.31

W W Grainger Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 31.5327.1028.6927.5429.2631.3531.5630.3128.850.00
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