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

As of today, W W Grainger Inc's current share price is $223.03. W W Grainger Inc's E10 for the quarter that ended in Jun. 2015 was $10.00. W W Grainger Inc's Shiller P/E Ratio for today is 22.30.

GWW' s 10-Year Shiller P/E Ratio Range
Min: 13.84   Max: 34.25
Current: 22.31

13.84
34.25

During the past 13 years, W W Grainger Inc's highest Shiller P/E Ratio was 34.25. The lowest was 13.84. And the median was 24.47.

GWW's Shiller P/E Ratiois ranked lower than
68% of the 114 Companies
in the Global Industrial Distribution industry.

( Industry Median: 15.85 vs. GWW: 22.31 )

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. 2015 was $3.250. 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 $10.00 for the trailing six years ended in Jun. 2015.


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
=223.03/10.00
=22.30

* 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 Dec14 is calculated as:

For example, W W Grainger Inc's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=3.25/238.638*238.666
=3.250

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

Current CPI = 238.666.

W W Grainger Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 2.9403.0302.9502.2333.0702.9403.3002.1673.0703.250
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 3.0143.0973.0072.2873.1012.9443.3092.2033.1033.250
201009201012201103201106201109201112201203201206201209201212
per share eps 2.0601.8722.1802.3402.5102.0802.5702.6302.1502.207
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 2.2512.0382.3282.4742.6402.2002.6742.7352.2172.294
200909200912201003201006
per share eps 1.8801.3001.3101.730
CPI 215.969215.949217.631217.965
Adj_EPS 2.0781.4371.4371.894

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 25.3821.9923.2818.5020.0125.1629.0727.5330.3027.65

W W Grainger Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 29.2531.3531.5530.3028.8428.0127.0527.6524.5923.66
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK