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

As of today, Hewlett-Packard Co's current share price is $39.16. Hewlett-Packard Co's E10 for the quarter that ended in Oct. 2014 was $1.61. Hewlett-Packard Co's Shiller P/E Ratio for today is 24.28.

HPQ' s 10-Year Shiller P/E Ratio Range
Min: 6.11   Max: 46.81
Current: 24.28

6.11
46.81

During the past 13 years, Hewlett-Packard Co's highest Shiller P/E Ratio was 46.81. The lowest was 6.11. And the median was 20.17.

HPQ's Shiller P/E Ratiois ranked higher than
88% of the 2783 Companies
in the Global Computer Systems industry.

( Industry Median: 9999.00 vs. HPQ: 24.28 )

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.

Hewlett-Packard Co's adjusted earnings per share data for the three months ended in Oct. 2014 was $0.701. 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 $1.61 for the trailing six years ended in Oct. 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
=39.16/1.61
=24.32

* 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 Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=0.7/238.21*238.389
=0.701

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

Current CPI = 238.389.

Hewlett-Packard Co Quarterly Data

201207201210201301201304201307201310201401201404201407201410
per share eps -4.490-3.4880.6300.5500.7100.7270.7400.6600.5200.700
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250238.210
Adj_EPS -4.672-3.5950.6520.5640.7250.7420.7540.6640.5200.701
201001201004201007201010201101201104201107201110201201201204
per share eps 0.9300.9100.7501.1061.1701.0500.9300.1180.7300.800
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 1.0230.9950.8201.2061.2671.1130.9810.1240.7680.829
200901200904200907200910
per share eps 0.7500.7000.6701.011
CPI 211.143213.240215.351216.177
Adj_EPS 0.8470.7830.7421.115

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 33.0044.2639.3219.7920.6615.498.297.7814.0621.90

Hewlett-Packard Co Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ShillerPE 7.447.789.3611.7714.5614.0616.9719.5721.6021.90
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