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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Shiller P/E Ratio
32.01 (As of Today)

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $78.43. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Jun. 2016 was $2.45. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 32.01.

HOT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 6.43   Max: 32.45
Current: 31.95

6.43
32.45

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 32.45. The lowest was 6.43. And the median was 24.51.

HOT's Shiller P/E Ratio is ranked lower than
57% of the 173 Companies
in the Global Lodging industry.

( Industry Median: 27.64 vs. HOT: 31.95 )

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.

Starwood Hotels & Resorts Worldwide Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was $-1.560. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.45 for the trailing ten years ended in Jun. 2016.


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.

Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=78.43/2.45
=32.01

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

Starwood Hotels & Resorts Worldwide Inc's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Starwood Hotels & Resorts Worldwide Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=-1.56/241.038*241.038
=-1.560

Current CPI (Jun. 2016) = 241.038.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.7200.8000.5901.2900.5800.7900.5300.9800.530-1.560
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.7340.8090.5971.3240.5920.7980.5370.9990.536-1.560
201109201112201203201206201209201212201303201306201309201312
per share eps 0.8400.8500.6500.6200.8700.7201.0900.7100.8100.670
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.8920.9080.6830.6510.9060.7561.1290.7330.8340.693
200903200906200909200912201003201006201009201012201103201106
per share eps 0.0300.7400.220-0.5900.1600.610-0.0301.7800.1400.680
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.0340.8270.246-0.6590.1770.675-0.0331.9580.1510.726
200609200612200703200706200709200712200803200806200809200812
per share eps 0.7100.9500.5600.6700.6100.7300.1700.5600.6200.440
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 0.8431.1350.6570.7750.7050.8380.1920.6170.6830.504

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.

Starwood Hotels & Resorts Worldwide Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.0011.9017.7829.1720.8323.1629.8228.9524.22

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 29.0229.2930.2028.9529.6628.5323.1324.2228.3830.12
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