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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $82.80. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Jun. 2014 was $4.08. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 20.28.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.63   Max: 104.3
Current: 20.28

3.63
104.3

During the past 13 years, Starwood Hotels & Resorts Worldwide Inc's highest Shiller P/E Ratio was 104.30. The lowest was 3.63. And the median was 17.16.

HOT's Shiller P/E Ratiois ranked higher than
90% of the 921 Companies
in the Global Lodging industry.

( Industry Median: 8580.60 vs. HOT: 20.28 )

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 Jun. 2014 was $0.799. 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 $4.08 for the trailing six years ended in Jun. 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
=82.80/4.08
=20.29

* 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 Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.8/238.343*238.064
=0.799

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

Current CPI = 238.064.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.6500.6200.8700.7211.0900.7100.8100.6740.7200.800
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.6750.6430.8950.7481.1150.7240.8240.6890.7250.799
200909200912201003201006201009201012201103201106201109201112
per share eps 0.2208.2060.1600.610-0.0301.7560.1400.6800.8400.856
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.2439.0460.1750.666-0.0331.9070.1490.7170.8810.903
200809200812200903200906
per share eps 0.6200.4340.0300.740
CPI 218.783210.228212.709215.693
Adj_EPS 0.6750.4910.0340.817

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 95.2432.2530.4818.097.209.6315.6011.6915.3320.46

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 13.2814.0115.1215.3316.3816.2717.0120.4619.8519.86
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