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

As of today, W W Grainger Inc's current share price is $239.94. W W Grainger Inc's E10 for the quarter that ended in Mar. 2014 was $8.78. W W Grainger Inc's Shiller P/E Ratio for today is 27.60.

GWW' s 10-Year Shiller P/E Ratio Range
Min: 13.93   Max: 34.16
Current: 27.6

13.93
34.16

During the past 13 years, W W Grainger Inc's highest Shiller P/E Ratio was 34.16. The lowest was 13.93. And the median was 23.87.

GWW's Shiller P/E Ratiois ranked higher than
82% of the 255 Companies
in the Global Industrial Distribution industry.

( Industry Median: 9999.00 vs. GWW: 27.60 )

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 $3.112. 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 $8.78 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
=239.94/8.78
=27.33

* 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*239.556
=3.112

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

Current CPI = 239.556.

W W Grainger Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 2.5702.6302.1502.2072.9403.0302.9502.2333.0702.940
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.728
Adj_EPS 2.6842.7462.2262.3033.0263.1093.0182.2953.1122.950
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 2.0851.4421.4421.9012.2592.0462.3372.4832.6502.208
200809200812200903200906
per share eps 1.7901.3881.2501.210
CPI 218.783210.228212.709215.693
Adj_EPS 1.9601.5821.4081.344

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 27.1525.4822.0923.1918.4719.9725.1029.0127.4830.53

W W Grainger Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 31.4727.0528.9027.4829.2131.5931.4930.5328.780.00
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