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

As of today, Starwood Hotels & Resorts Worldwide Inc's current share price is $81.23. Starwood Hotels & Resorts Worldwide Inc's E10 for the quarter that ended in Sep. 2014 was $4.03. Starwood Hotels & Resorts Worldwide Inc's Shiller P/E Ratio for today is 20.16.

HOT' s 10-Year Shiller P/E Ratio Range
Min: 3.63   Max: 107.28
Current: 20.17

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 17.48.

HOT's Shiller P/E Ratiois ranked higher than
90% of the 1092 Companies
in the Global Lodging industry.

( Industry Median: 9999.00 vs. HOT: 20.17 )

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. 2014 was $0.584. 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 $4.03 for the trailing six years ended in Sep. 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
=81.23/4.03
=20.16

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.59/238.031*235.51
=0.584

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

Current CPI = 235.51.

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.6200.8700.7211.0900.7100.8100.6740.7200.8000.590
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.6360.8850.7401.1030.7160.8150.6810.7180.7900.584
200912201003201006201009201012201103201106201109201112201203
per share eps 8.2060.1600.610-0.0301.7560.1400.6800.8400.8560.650
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 8.9490.1730.659-0.0321.8870.1480.7090.8720.8930.667
200812200903200906200909
per share eps 0.4340.0300.7400.220
CPI 210.228212.709215.693215.969
Adj_EPS 0.4860.0330.8080.240

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 96.3232.3430.5318.117.219.6315.4611.6915.3320.47

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 14.0115.1215.3316.3816.2717.0220.4719.8519.8020.70
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