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H&R Block Inc (NYSE:HRB)
Shiller P/E Ratio
22.33 (As of Today)

As of today, H&R Block Inc's current share price is $32.21. H&R Block Inc's E10 for the quarter that ended in Jul. 2014 was $1.44. H&R Block Inc's Shiller P/E Ratio for today is 22.33.

HRB' s 10-Year Shiller P/E Ratio Range
Min: 14.76   Max: 58.84
Current: 22.33

14.76
58.84

During the past 13 years, H&R Block Inc's highest Shiller P/E Ratio was 58.84. The lowest was 14.76. And the median was 24.89.

HRB's Shiller P/E Ratiois ranked higher than
89% of the 94 Companies
in the Global Personal Services industry.

( Industry Median: 9999.00 vs. HRB: 22.33 )

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.

H&R Block Inc's adjusted earnings per share data for the three months ended in Jul. 2014 was $-0.420. 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 $1.44 for the trailing six years ended in Jul. 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.

H&R Block Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=32.21/1.44
=22.37

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

H&R Block Inc's E10 for the fiscal year that ended in Apr14 is calculated as:

For example, H&R Block Inc's adjusted earnings per share data for the three months ended in Jul. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jul. 2014*CPI of Current
=-0.42/238.25*238.064
=-0.420

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

Current CPI = 238.064.

H&R Block Inc Quarterly Data

201204201207201210201301201304201307201310201401201404201407
per share eps 1.980-0.390-0.390-0.0702.393-0.420-0.390-0.7803.215-0.420
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.250
Adj_EPS 2.049-0.405-0.401-0.0722.450-0.428-0.398-0.7943.228-0.420
200910201001201004201007201010201101201104201107201110201201
per share eps -0.3800.1502.093-0.410-0.360-0.0402.142-0.570-0.470-0.010
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS -0.4180.1652.286-0.448-0.392-0.0432.267-0.601-0.494-0.011
200810200901200904200907
per share eps -0.4100.1402.056-0.400
CPI 216.573211.143213.240215.351
Adj_EPS -0.4510.1582.295-0.442

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.

H&R Block Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ShillerPE 19.5015.8920.6629.8719.6228.1332.5033.7629.0919.76

H&R Block Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 33.7636.4037.1845.4829.0929.7422.2125.8019.7622.49
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