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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $80.67. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Dec. 2014 was $4.15. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 19.44.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.61   Max: 107.28
Current: 19.4

3.61
107.28

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 107.28. The lowest was 3.61. And the median was 17.91.

HOT's Shiller P/E Ratiois ranked higher than
90% of the 1377 Companies
in the Global Lodging industry.

( Industry Median: 0.00 vs. HOT: 19.40 )

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 Dec. 2014 was $1.341. 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 $4.15 for the trailing six years ended in Dec. 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.

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

Shiller P/E Ratio=Share Price/E10
=80.67/4.15
=19.44

* 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 Dec14 is calculated as:

For example, Starwood Hotels & Resorts Worldwide Inc's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=1.33/234.812*236.818
=1.341

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

Current CPI = 236.818.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 0.8700.7211.0900.7100.8100.6740.7200.8000.5901.330
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 0.8900.7441.1090.7200.8190.6850.7220.7950.5871.341
201003201006201009201012201103201106201109201112201203201206
per share eps 0.1600.610-0.0301.7560.1400.6800.8400.8560.6500.620
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.1740.663-0.0331.8970.1480.7130.8770.8980.6710.640
200903200906200909200912
per share eps 0.0300.7400.2208.206
CPI 212.709215.693215.969215.949
Adj_EPS 0.0330.8120.2418.999

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.

Starwood Hotels & Resorts Worldwide Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 32.3430.3518.157.239.6515.4911.7215.2320.5319.52

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 15.0215.2316.4216.1616.9020.5319.7319.6820.3319.52
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK