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Home Inns & Hotels Management Inc (NAS:HMIN)
Shiller P/E Ratio
34.45 (As of Today)

As of today, Home Inns & Hotels Management Inc's current share price is $30.32. Home Inns & Hotels Management Inc's E10 for the quarter that ended in Sep. 2014 was $0.88. Home Inns & Hotels Management Inc's Shiller P/E Ratio for today is 34.45.

HMIN' s 10-Year Shiller P/E Ratio Range
Min: 30.36   Max: 108.83
Current: 34.63

30.36
108.83

During the past 12 years, Home Inns & Hotels Management Inc's highest Shiller P/E Ratio was 108.83. The lowest was 30.36. And the median was 52.14.

HMIN's Shiller P/E Ratiois ranked higher than
83% of the 1087 Companies
in the Global Lodging industry.

( Industry Median: 9999.00 vs. HMIN: 34.63 )

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.

Home Inns & Hotels Management Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was $0.693. 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 $0.88 for the trailing six years ended in Sep. 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.

Home Inns & Hotels Management Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=30.32/0.88
=34.45

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

Home Inns & Hotels Management Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Home Inns & Hotels Management Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.700531100323/238.031*235.51
=0.693

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

Current CPI = 235.51.

Home Inns & Hotels Management Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.1160.1170.022-0.0680.2740.3790.0460.0160.3630.701
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.1190.1190.023-0.0680.2760.3810.0470.0160.3580.693
200912201003201006201009201012201103201106201109201112201203
per share eps 0.6930.1580.4660.5070.0000.1100.2630.0970.000-0.361
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.7560.1710.5040.5470.0000.1160.2740.1010.000-0.371
200812200903200906200909
per share eps 0.240-0.0590.2050.290
CPI 210.228212.709215.693215.969
Adj_EPS 0.269-0.0650.2240.316

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.

Home Inns & Hotels Management Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.000.000.000.0051.3465.90

Home Inns & Hotels Management Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 40.6643.0751.3453.4245.1851.7765.9045.3843.9533.11
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