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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $81.88. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Dec. 2015 was $3.84. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 21.32.

HOT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 6.48   Max: 30
Current: 21.33

6.48
30

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 30.00. The lowest was 6.48. And the median was 18.06.

HOT's Shiller P/E Ratio is ranked higher than
61% of the 161 Companies
in the Global Lodging industry.

( Industry Median: 25.72 vs. HOT: 21.33 )

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. 2015 was $0.976. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.84 for the trailing ten years ended in Dec. 2015.


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
=81.88/3.84
=21.32

* 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 Dec. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=0.976/236.525*236.525
=0.976

Current CPI (Dec. 2015) = 236.525.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 0.8100.6740.7200.8000.5901.3300.5800.7900.5300.976
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 0.8180.6840.7210.7940.5861.3400.5810.7830.5270.976
201103201106201109201112201203201206201209201212201303201306
per share eps 0.1400.6800.8400.8560.6500.6200.8700.7211.0900.710
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 0.1480.7130.8760.8970.6700.6390.8890.7431.1080.719
200809200812200903200906200909200912201003201006201009201012
per share eps 0.6200.4340.0300.7400.2208.2060.1600.610-0.0301.756
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.6700.4880.0330.8110.2418.9880.1740.662-0.0321.895
200603200606200609200612200703200706200709200712200803200806
per share eps 0.0203.0100.7100.9230.5600.6700.6100.7340.1700.560
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 0.0243.5090.8281.0820.6450.7610.6920.8270.1880.605

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 0.000.0011.9912.5120.3914.8616.7722.0921.6418.03

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 18.3822.0921.4021.7922.4521.6421.9921.1517.3618.03
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