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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $82.59. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Mar. 2015 was $4.29. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 19.25.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.63   Max: 107.28
Current: 19.3

3.63
107.28

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 107.28. The lowest was 3.63. And the median was 17.97.

HOT's Shiller P/E Ratiois ranked higher than
65% of the 436 Companies
in the Global Lodging industry.

( Industry Median: 25.40 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 Mar. 2015 was $0.583. 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 $4.29 for the trailing six years ended in Mar. 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
=82.59/4.29
=19.25

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=0.58/236.119*237.167
=0.583

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

Current CPI = 237.167.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.7211.0900.7100.8100.6740.7200.8000.5901.3300.580
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.7451.1110.7210.8200.6860.7230.7960.5881.3430.583
201006201009201012201103201106201109201112201203201206201209
per share eps 0.610-0.0301.7560.1400.6800.8400.8560.6500.6200.870
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.664-0.0331.9000.1490.7140.8780.9000.6720.6410.892
200906200909200912201003
per share eps 0.7400.2208.2060.160
CPI 215.693215.969215.949217.631
Adj_EPS 0.8140.2429.0120.174

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 32.3530.5418.127.229.6415.4811.7115.2220.5219.50

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 15.2216.4216.3116.8920.5219.7119.8620.5119.5019.46
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