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

As of today, H&R Block Inc's current share price is $35.06. H&R Block Inc's E10 for the quarter that ended in Apr. 2015 was $1.46. H&R Block Inc's Shiller P/E Ratio for today is 24.01.

HRB' s 10-Year Shiller P/E Ratio Range
Min: 14.76   Max: 58.84
Current: 23.99

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 24.39.

HRB's Shiller P/E Ratiois ranked higher than
56% of the 36 Companies
in the Global Personal Services industry.

( Industry Median: 24.71 vs. HRB: 23.99 )

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. 2015 was $2.628. 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 $1.46 for the trailing six years ended in Apr. 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.

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

Shiller P/E Ratio=Share Price/E10
=35.06/1.46
=24.01

* 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 Apr15 is calculated as:

For example, H&R Block Inc's adjusted earnings per share data for the three months ended in Apr. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2015*CPI of Current
=2.605/236.599*238.666
=2.628

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

Current CPI = 238.666.

H&R Block Inc Quarterly Data

201304201307201310201401201404201407201410201501201504201507
per share eps 2.393-0.420-0.390-0.7803.215-0.420-0.410-0.1302.6050.000
CPI 232.531233.596233.546233.916237.072238.250237.433233.707236.599238.654
Adj_EPS 2.456-0.429-0.399-0.7963.237-0.421-0.412-0.1332.6280.000
201010201101201104201107201110201201201204201207201210201301
per share eps -0.360-0.0402.142-0.570-0.470-0.0101.980-0.390-0.390-0.070
CPI 218.711220.223224.906225.922226.421226.665230.085229.104231.317230.280
Adj_EPS -0.393-0.0432.273-0.602-0.495-0.0112.054-0.406-0.402-0.073
200910201001201004201007
per share eps -0.3800.1502.093-0.410
CPI 216.177216.687218.009218.011
Adj_EPS -0.4200.1652.291-0.449

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

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
ShillerPE 15.8520.5829.8219.6028.1032.6334.0829.2519.8020.68

H&R Block Inc Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
ShillerPE 29.2529.5922.1225.6819.8022.1022.3524.7720.680.00
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