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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $78.76. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Jun. 2014 was $4.10. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 19.30.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.61   Max: 107.28
Current: 19.3

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 16.89.

HOT's Shiller P/E Ratiois ranked higher than
92% of the 910 Companies
in the Global Lodging industry.

( Industry Median: 9999.00 vs. HOT: 19.30 )

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. 2014 was $0.801. 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 $4.10 for the trailing six years ended in Jun. 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
=78.76/4.10
=19.21

* 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 Dec13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.8/238.343*238.786
=0.801

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

Current CPI = 238.786.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.6500.6200.8700.7211.0900.7100.8100.6740.7200.800
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.6770.6450.8980.7501.1180.7260.8260.6910.7280.801
200909200912201003201006201009201012201103201106201109201112
per share eps 0.2208.2060.1600.610-0.0301.7560.1400.6800.8400.856
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.2439.0740.1760.668-0.0331.9130.1500.7190.8840.906
200809200812200903200906
per share eps 0.6200.4340.0300.740
CPI 218.783210.228212.709215.693
Adj_EPS 0.6770.4930.0340.819

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 95.3932.1230.4018.167.239.6515.5011.7215.2420.35

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 13.1913.9215.0315.2416.4316.1716.9120.3519.7419.76
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