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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Shiller P/E Ratio
19.50 (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 Dec. 2013 was $3.91. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 19.50.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.63   Max: 107.28
Current: 19.5

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 16.68.

HOT's Shiller P/E Ratiois ranked higher than
74% of the 359 Companies
in the Global Lodging industry.

( Industry Median: 24.79 vs. HOT: 19.50 )

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. 2013 was $0.684. 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 $3.91 for the trailing six years ended in Dec. 2013.


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
=77.58/3.91
=19.84

* 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 Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.674/233.049*236.511
=0.684

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

Current CPI = 236.511.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 0.8400.8560.6500.6200.8700.7211.0900.7100.8100.674
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.8760.8970.6700.6390.8890.7431.1080.7190.8180.684
200903200906200909200912201003201006201009201012201103201106
per share eps 0.0300.7400.2208.2060.1600.610-0.0301.7560.1400.680
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.0330.8110.2418.9870.1740.662-0.0321.8950.1480.713
200803200806200809200812
per share eps 0.1700.5600.6200.434
CPI 213.528218.815218.783210.228
Adj_EPS 0.1880.6050.6700.488

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 95.1732.2030.3618.177.179.6515.5011.7215.2420.34

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 9.4211.7213.1913.9215.0315.2416.4316.1716.9120.34
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