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

As of today, Hewlett-Packard Co's current share price is $31.93. Hewlett-Packard Co's E10 for the quarter that ended in Jan. 2014 was $1.73. Hewlett-Packard Co's Shiller P/E Ratio for today is 18.30.

HPQ' s 10-Year Shiller P/E Ratio Range
Min: 6.06   Max: 47.34
Current: 18.3

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 19.80.

HPQ's Shiller P/E Ratiois ranked higher than
73% of the 794 Companies
in the Global Computer Systems industry.

( Industry Median: 25.60 vs. HPQ: 18.30 )

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 Jan. 2014 was $0.748. 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 $1.73 for the trailing six years ended in Jan. 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
=31.93/1.73
=18.46

* 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 Jan. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2014*CPI of Current
=0.74/233.916*236.511
=0.748

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

Current CPI = 236.511.

Hewlett-Packard Co Quarterly Data

201110201201201204201207201210201301201304201307201310201401
per share eps 0.1180.7300.800-4.490-3.4880.6300.5500.7100.7270.740
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 0.1230.7620.822-4.635-3.5660.6470.5590.7190.7360.748
200904200907200910201001201004201007201010201101201104201107
per share eps 0.7100.6900.9960.9300.9100.7501.1061.1701.0500.930
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS 0.7870.7581.0901.0150.9870.8141.1961.2571.1040.974
200804200807200810200901
per share eps 0.8000.8000.8320.750
CPI 214.823219.964216.573211.143
Adj_EPS 0.8810.8600.9090.840

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 18.5632.9544.2739.2819.7620.6115.468.277.7514.02

Hewlett-Packard Co Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ShillerPE 8.278.597.517.427.759.3311.7214.5214.0216.76
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