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

As of today, Hewlett-Packard Co's current share price is $36.80. Hewlett-Packard Co's E10 for the quarter that ended in Apr. 2014 was $1.72. Hewlett-Packard Co's Shiller P/E Ratio for today is 21.40.

HPQ' s 10-Year Shiller P/E Ratio Range
Min: 6.08   Max: 47.34
Current: 21.4

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 19.90.

HPQ's Shiller P/E Ratiois ranked higher than
90% of the 2666 Companies
in the Global Computer Systems industry.

( Industry Median: 9999.00 vs. HPQ: 21.40 )

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 $0.666. 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 $1.72 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
=36.80/1.72
=21.40

* 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*239.229
=0.666

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

Current CPI = 239.229.

Hewlett-Packard Co Quarterly Data

201204201207201210201301201304201307201310201401201404201407
per share eps 0.800-4.490-3.4880.6300.5500.7100.7270.7400.6600.520
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.786
Adj_EPS 0.832-4.688-3.6070.6540.5660.7270.7450.7570.6660.521
200910201001201004201007201010201101201104201107201110201201
per share eps 0.9960.9300.9100.7501.1061.1701.0500.9300.1180.730
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS 1.1021.0270.9990.8231.2101.2711.1170.9850.1250.770
200810200901200904200907
per share eps 0.8320.7500.7100.690
CPI 216.573211.143213.240215.351
Adj_EPS 0.9190.8500.7970.767

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 18.5332.9444.5139.5019.7120.7415.418.337.7213.97

Hewlett-Packard Co Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 7.497.397.729.2911.6714.4613.9716.8619.260.00
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