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HDFC Bank Ltd (NYSE:HDB)
Shiller P/E Ratio
43.30 (As of Today)

As of today, HDFC Bank Ltd's current share price is $47.82. HDFC Bank Ltd's E10 for the quarter that ended in Jun. 2014 was $1.12. HDFC Bank Ltd's Shiller P/E Ratio for today is 43.30.

HDB' s 10-Year Shiller P/E Ratio Range
Min: 39.21   Max: 44.36
Current: 43.3

39.21
44.36

During the past 13 years, HDFC Bank Ltd's highest Shiller P/E Ratio was 44.36. The lowest was 39.21. And the median was 41.79.

HDB's Shiller P/E Ratiois ranked higher than
53% of the 1097 Companies
in the Global Banks - Regional - Asia industry.

( Industry Median: 16.30 vs. HDB: 43.30 )

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.

HDFC Bank Ltd's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.459. 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 $1.12 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.

HDFC Bank Ltd's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=47.82/1.12
=42.70

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

HDFC Bank Ltd's E10 for the fiscal year that ended in Mar14 is calculated as:

For example, HDFC Bank Ltd'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
=0.459265175719/238.343*238.064
=0.459

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

Current CPI = 238.064.

HDFC Bank Ltd Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.3090.0320.0340.4320.3100.3870.3240.4690.3650.459
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.3200.0340.0350.4470.3170.3940.3290.4790.3680.459
200909200912201003201006201009201012201103201106201109201112
per share eps 0.1010.2410.1000.2230.2640.3040.3760.3110.3110.359
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.1120.2650.1100.2440.2870.3300.4000.3280.3260.379
200809200812200903200906
per share eps 0.0590.1800.0000.175
CPI 218.783210.228212.709215.693
Adj_EPS 0.0640.2040.0000.193

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.

HDFC Bank Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ShillerPE 0.000.000.000.000.000.000.000.000.0041.28

HDFC Bank Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 0.000.000.000.000.000.000.000.0041.2842.10
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