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

As of today, Hewlett-Packard Co's current share price is $28.13. Hewlett-Packard Co's E10 for the quarter that ended in Apr. 2015 was $1.56. Hewlett-Packard Co's Shiller P/E Ratio for today is 18.03.

HPQ' s 10-Year Shiller P/E Ratio Range
Min: 6.08   Max: 47.34
Current: 18.08

6.08
47.34

During the past 13 years, Hewlett-Packard Co's highest Shiller P/E Ratio was 47.34. The lowest was 6.08. And the median was 20.18.

HPQ's Shiller P/E Ratiois ranked higher than
56% of the 844 Companies
in the Global Computer Systems industry.

( Industry Median: 20.66 vs. HPQ: 18.08 )

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. 2015 was $0.555. 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 $1.56 for the trailing six years ended in Apr. 2015.


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
=28.13/1.56
=18.03

* 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 Oct14 is calculated as:

For example, Hewlett-Packard Co's adjusted earnings per share data for the three months ended in Apr. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2015*CPI of Current
=0.55/236.599*238.666
=0.555

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

Current CPI = 238.666.

Hewlett-Packard Co Quarterly Data

201301201304201307201310201401201404201407201410201501201504
per share eps 0.6300.5500.7100.7270.7400.6600.5200.6970.7300.550
CPI 230.280232.531233.596233.546233.916237.072238.250237.433233.707236.599
Adj_EPS 0.6530.5650.7250.7430.7550.6640.5210.7010.7450.555
201007201010201101201104201107201110201201201204201207201210
per share eps 0.7501.1061.1701.0500.9300.1180.7300.800-4.490-3.488
CPI 218.011218.711220.223224.906225.922226.421226.665230.085229.104231.317
Adj_EPS 0.8211.2071.2681.1140.9820.1240.7690.830-4.677-3.599
200907200910201001201004
per share eps 0.6900.9960.9300.910
CPI 215.351216.177216.687218.009
Adj_EPS 0.7651.1001.0240.996

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

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ShillerPE 33.0144.3239.3219.7720.6215.468.287.7614.0322.42

Hewlett-Packard Co Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ShillerPE 9.3411.7314.5314.0316.9319.5321.5622.4223.0521.16
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