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

As of today, W W Grainger Inc's current share price is $211.09. W W Grainger Inc's E10 for the quarter that ended in Sep. 2015 was $8.40. W W Grainger Inc's Shiller P/E Ratio for today is 25.13.

GWW' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 16.84   Max: 41.47
Current: 25.12

16.84
41.47

During the past 13 years, W W Grainger Inc's highest Shiller P/E Ratio was 41.47. The lowest was 16.84. And the median was 28.53.

GWW's Shiller P/E Ratio is ranked lower than
61% of the 51 Companies
in the Global Industrial Distribution industry.

( Industry Median: 18.41 vs. GWW: 25.12 )

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 Sep. 2015 was $2.920. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $8.40 for the trailing ten years ended in Sep. 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
=211.09/8.40
=25.13

* 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 Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=2.92/237.945*237.945
=2.920

Current CPI (Sep. 2015) = 237.945.

W W Grainger Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 2.9502.2103.0702.9403.3002.1503.0703.2502.9202.300
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 2.9982.2563.0912.9353.2992.1793.0943.2412.9202.314
201103201106201109201112201203201206201209201212201303201306
per share eps 2.1802.3402.5102.0402.5702.6302.1502.1702.9403.030
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 2.3212.4672.6322.1512.6662.7272.2112.2493.0053.088
200809200812200903200906200909200912201003201006201009201012
per share eps 1.7901.3201.2501.2101.8801.2801.3101.7302.0601.830
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 1.9471.4941.3981.3352.0711.4101.4321.8892.2441.987
200603200606200609200612200703200706200709200712200803200806
per share eps 0.9301.0201.1601.1301.1701.2101.2901.2701.4301.430
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 1.1081.1961.3601.3321.3561.3821.4721.4391.5941.555

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 own currency.

W W Grainger Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 23.6326.5822.1424.3731.0835.6933.8437.0133.020.00

W W Grainger Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 38.6937.0135.1434.0632.6733.0229.7328.7725.590.00
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