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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $77.58. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Sep. 2014 was $4.07. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 19.10.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.62   Max: 104.3
Current: 19.1

3.62
104.3

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 104.30. The lowest was 3.62. And the median was 17.36.

HOT's Shiller P/E Ratiois ranked higher than
91% of the 1086 Companies
in the Global Lodging industry.

( Industry Median: 9999.00 vs. HOT: 19.10 )

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 Sep. 2014 was $0.591. 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 $4.07 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.

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

Shiller P/E Ratio=Share Price/E10
=77.58/4.07
=19.06

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.59/238.031*238.389
=0.591

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

Current CPI = 238.389.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.6200.8700.7211.0900.7100.8100.6740.7200.8000.590
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6440.8960.7491.1160.7250.8250.6890.7260.8000.591
200912201003201006201009201012201103201106201109201112201203
per share eps 8.2060.1600.610-0.0301.7560.1400.6800.8400.8560.650
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 9.0590.1750.667-0.0331.9100.1490.7180.8830.9040.675
200812200903200906200909
per share eps 0.4340.0300.7400.220
CPI 210.228212.709215.693215.969
Adj_EPS 0.4920.0340.8180.243

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 95.1032.2230.4518.077.199.6215.5911.7915.3120.44

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 13.9915.1015.3116.3616.2516.9920.4419.8319.7820.47
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