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

As of today, Hewlett-Packard Co's current share price is $32.50. Hewlett-Packard Co's E10 for the quarter that ended in Jan. 2015 was $1.59. Hewlett-Packard Co's Shiller P/E Ratio for today is 20.44.

HPQ' s 10-Year Shiller P/E Ratio Range
Min: 6.08   Max: 46.81
Current: 20.4

6.08
46.81

During the past 13 years, Hewlett-Packard Co's highest Shiller P/E Ratio was 46.81. The lowest was 6.08. And the median was 20.13.

HPQ's Shiller P/E Ratiois ranked higher than
92% of the 3176 Companies
in the Global Computer Systems industry.

( Industry Median: 0.00 vs. HPQ: 20.40 )

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 Jan. 2015 was $0.741. 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 $1.59 for the trailing six years ended in Jan. 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
=32.50/1.59
=20.44

* 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 Jan. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=0.73/233.707*237.167
=0.741

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

Current CPI = 237.167.

Hewlett-Packard Co Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps -3.4880.6300.5500.7100.7270.7400.6600.5200.6970.730
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433233.707
Adj_EPS -3.5760.6490.5610.7210.7380.7500.6600.5180.6960.741
201004201007201010201101201104201107201110201201201204201207
per share eps 0.9100.7501.1061.1701.0500.9300.1180.7300.800-4.490
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS 0.9900.8161.1991.2601.1070.9760.1240.7640.825-4.648
200904200907200910201001
per share eps 0.7100.6900.9960.930
CPI 213.240215.351216.177216.687
Adj_EPS 0.7900.7601.0931.018

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 32.9544.2139.2219.7420.7715.428.337.7213.9622.31

Hewlett-Packard Co Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 7.729.2911.6814.4613.9616.8519.4321.4622.3122.73
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