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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $64.01. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Sep. 2015 was $2.88. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 22.23.

HOT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 6.48   Max: 25.13
Current: 22.26

6.48
25.13

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 25.13. The lowest was 6.48. And the median was 17.72.

HOT's Shiller P/E Ratio is ranked higher than
51% of the 157 Companies
in the Global Lodging industry.

( Industry Median: 22.51 vs. HOT: 22.26 )

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. 2015 was $0.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.88 for the trailing ten years ended in Sep. 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
=64.01/2.88
=22.23

* 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 Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.53/237.945*237.945
=0.530

Current CPI (Sep. 2015) = 237.945.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201306201309201312201403201406201409201412201503201506201509
per share eps 0.7100.8100.6700.7200.8000.5901.2900.5800.7900.530
CPI 233.504234.149233.049236.293238.343238.031234.812236.119238.638237.945
Adj_EPS 0.7240.8230.6840.7250.7990.5901.3070.5840.7880.530
201012201103201106201109201112201203201206201209201212201303
per share eps 1.7800.1400.6800.8400.8500.6500.6200.8700.7201.090
CPI 219.179223.467225.722226.889225.672229.392229.478231.407229.601232.773
Adj_EPS 1.9320.1490.7170.8810.8960.6740.6430.8950.7461.114
200806200809200812200903200906200909200912201003201006201009
per share eps 0.5600.6200.4400.0300.7400.220-0.5800.1600.610-0.030
CPI 218.815218.783210.228212.709215.693215.969215.949217.631217.965218.439
Adj_EPS 0.6090.6740.4980.0340.8160.242-0.6390.1750.666-0.033
200512200603200606200609200612200703200706200709200712200803
per share eps 0.7000.0203.0100.7100.9500.5600.6700.6100.7300.170
CPI 196.800199.800202.900202.900201.800205.352208.352208.490210.036213.528
Adj_EPS 0.8460.0243.5300.8331.1200.6490.7650.6960.8270.189

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 0.000.000.0016.0817.8029.2120.8523.1829.8228.94

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
ShillerPE 24.3225.0729.8229.0229.2830.1828.9429.6628.5223.12
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