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Hewlett-Packard Co (NYSE:HPQ)
Shiller P/E Ratio
20.20 (As of Today)

As of today, Hewlett-Packard Co's current share price is $34.52. Hewlett-Packard Co's E10 for the quarter that ended in Apr. 2014 was $1.71. Hewlett-Packard Co's Shiller P/E Ratio for today is 20.20.

HPQ' s 10-Year Shiller P/E Ratio Range
Min: 6.06   Max: 47.34
Current: 20.2

6.06
47.34

During the past 13 years, Hewlett-Packard Co's highest Shiller P/E Ratio was 47.34. The lowest was 6.06. And the median was 19.82.

HPQ's Shiller P/E Ratiois ranked higher than
92% of the 2660 Companies
in the Global Computer Systems industry.

( Industry Median: 9999.00 vs. HPQ: 20.20 )

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.

Hewlett-Packard Co's adjusted earnings per share data for the three months ended in Apr. 2014 was $0.667. 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 $1.71 for the trailing six years ended in Apr. 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.

Hewlett-Packard Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=34.52/1.71
=20.19

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Hewlett-Packard Co's E10 for the fiscal year that ended in Oct13 is calculated as:

For example, Hewlett-Packard Co's adjusted earnings per share data for the three months ended in Apr. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2014*CPI of Current
=0.66/237.072*239.556
=0.667

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

Current CPI = 239.556.

Hewlett-Packard Co Quarterly Data

201201201204201207201210201301201304201307201310201401201404
per share eps 0.7300.800-4.490-3.4880.6300.5500.7100.7270.7400.660
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.7720.833-4.695-3.6120.6550.5670.7280.7460.7580.667
200907200910201001201004201007201010201101201104201107201110
per share eps 0.6900.9960.9300.9100.7501.1061.1701.0500.9300.118
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.7681.1041.0281.0000.8241.2111.2731.1180.9860.125
200807200810200901200904
per share eps 0.8000.8320.7500.710
CPI 219.964216.573211.143213.240
Adj_EPS 0.8710.9200.8510.798

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.

Hewlett-Packard Co Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ShillerPE 18.5032.8744.4939.4819.8620.7115.528.317.8214.13

Hewlett-Packard Co Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ShillerPE 8.627.477.467.829.3111.7114.6314.1316.8919.31
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