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

As of today, HDFC Bank Ltd's current share price is $48.24. HDFC Bank Ltd's E10 for the quarter that ended in Dec. 2013 was $0.99. HDFC Bank Ltd's Shiller P/E Ratio for today is 48.55.

HDB' s 10-Year Shiller P/E Ratio Range
Min: 23.27   Max: 81.61
Current: 48.55

23.27
81.61

During the past 13 years, HDFC Bank Ltd's highest Shiller P/E Ratio was 81.61. The lowest was 23.27. And the median was 46.51.

HDB's Shiller P/E Ratiois ranked higher than
75% of the 1834 Companies
in the Global Banks - Regional - Asia industry.

( Industry Median: 140.07 vs. HDB: 48.55 )

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 Dec. 2013 was $0.480. 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 $0.99 for the trailing six years ended in Dec. 2013.


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
=48.24/0.99
=48.73

* 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 Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.468553762921/233.049*238.786
=0.480

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

Current CPI = 238.786.

HDFC Bank Ltd Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.3590.3090.0320.0340.4320.3100.0400.6600.4690.477
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.3800.3210.0340.0350.4490.3180.0410.6730.4800.482
200906200909200912201003201006201009201012201103201106201109
per share eps 0.1750.1010.2410.1000.2230.2640.3040.3760.3110.311
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.1940.1120.2660.1100.2450.2880.3310.4020.3290.327
200806200809200812200903
per share eps 0.1520.0530.1800.000
CPI 218.815218.783210.228212.709
Adj_EPS 0.1660.0580.2040.000

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 0.000.0041.8653.030.0057.1252.7542.8743.480.00

HDFC Bank Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 34.4742.8741.1347.6349.2043.4842.4632.5534.660.00
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