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

As of today, H&R Block Inc's current share price is $32.35. H&R Block Inc's E10 for the quarter that ended in Apr. 2014 was $1.45. H&R Block Inc's Shiller P/E Ratio for today is 22.36.

HRB' s 10-Year Shiller P/E Ratio Range
Min: 14.76   Max: 58.84
Current: 22.36

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 25.10.

HRB's Shiller P/E Ratiois ranked higher than
91% of the 90 Companies
in the Global Personal Services industry.

( Industry Median: 9999.00 vs. HRB: 22.36 )

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 Apr. 2014 was $3.238. 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 $1.45 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.

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

Shiller P/E Ratio=Share Price/E10
=32.35/1.45
=22.31

* 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 Apr. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2014*CPI of Current
=3.215/237.072*238.786
=3.238

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

Current CPI = 238.786.

H&R Block Inc Quarterly Data

201201201204201207201210201301201304201307201310201401201404
per share eps -0.0101.980-0.390-0.390-0.0702.393-0.420-0.390-0.7803.215
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS -0.0112.055-0.406-0.403-0.0732.457-0.429-0.399-0.7963.238
200907200910201001201004201007201010201101201104201107201110
per share eps -0.400-0.3800.1502.093-0.410-0.360-0.0402.142-0.570-0.470
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS -0.444-0.4200.1652.292-0.449-0.393-0.0432.274-0.602-0.496
200807200810200901200904
per share eps -0.410-0.4100.1402.056
CPI 219.964216.573211.143213.240
Adj_EPS -0.445-0.4520.1582.302

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 19.6015.9520.7229.7419.5528.1232.3333.9029.1719.64

H&R Block Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ShillerPE 39.0033.9036.2037.0045.7129.1729.5122.0725.6219.64
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