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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $81.48. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Mar. 2016 was $3.92. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 20.79.

HOT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 6.43   Max: 30
Current: 20.78

6.43
30

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 30.00. The lowest was 6.43. And the median was 17.82.

HOT's Shiller P/E Ratio is ranked higher than
59% of the 163 Companies
in the Global Lodging industry.

( Industry Median: 23.89 vs. HOT: 20.78 )

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. 2016 was $0.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.92 for the trailing ten years ended in Mar. 2016.


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
=81.48/3.92
=20.79

* 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 Dec15 is calculated as:

For example, Starwood Hotels & Resorts Worldwide Inc's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.53/238.132*238.132
=0.530

Current CPI (Mar. 2016) = 238.132.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.6740.7200.8000.5901.3300.5800.7900.5300.9760.530
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.6890.7260.7990.5901.3490.5850.7880.5300.9830.530
201106201109201112201203201206201209201212201303201306201309
per share eps 0.6800.8400.8560.6500.6200.8700.7211.0900.7100.810
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.7170.8820.9030.6750.6430.8950.7481.1150.7240.824
200812200903200906200909200912201003201006201009201012201103
per share eps 0.4340.0300.7400.2208.2060.1600.610-0.0301.7560.140
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.4920.0340.8170.2439.0490.1750.666-0.0331.9080.149
200606200609200612200703200706200709200712200803200806200809
per share eps 3.0100.7100.9230.5600.6700.6100.7340.1700.5600.620
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 3.5330.8331.0890.6490.7660.6970.8320.1900.6090.675

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.0012.0112.5320.4114.8916.8022.1421.6918.07

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 22.1421.4521.6222.2821.6922.0421.2017.2318.0721.26
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