Switch to:
GuruFocus has detected 2 Warning Signs with H&R Block Inc $HRB.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
H&R Block Inc (NYSE:HRB)
Shiller PE Ratio
27.24 (As of Today)

As of today, H&R Block Inc's current share price is $24.79. H&R Block Inc's E10 for the quarter that ended in Jan. 2017 was $0.91. H&R Block Inc's Shiller P/E Ratio for today is 27.24.

HRB' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11   Max: 41.4
Current: 27.3

11
41.4

During the past 13 years, H&R Block Inc's highest Shiller P/E Ratio was 41.40. The lowest was 11.00. And the median was 23.05.

HRB's Shiller PE Ratio is ranked higher than
75% of the 16 Companies
in the Global Personal Services industry.

( Industry Median: 40.70 vs. HRB: 27.30 )

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 Jan. 2017 was $-0.503. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.91 for the trailing ten years ended in Jan. 2017.


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
=24.79/0.91
=27.24

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

H&R Block Inc's E10 for the fiscal year that ended in Apr16 is calculated as:

For example, H&R Block Inc's adjusted earnings per share data for the three months ended in Jan. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2017 (Change)*Current CPI (Jan. 2017)
=-0.503/242.839*242.839
=-0.503

Current CPI (Jan. 2017) = 242.839.

H&R Block Inc Quarterly Data

201410201501201504201507201510201601201604201607201610201701
per share eps -0.410-0.1302.680-0.360-0.550-0.3522.755-0.560-0.680-0.503
CPI 237.433233.707236.599238.654237.838236.916239.261240.628241.729242.839
Adj_EPS -0.419-0.1352.751-0.366-0.562-0.3612.796-0.565-0.683-0.503
201204201207201210201301201304201307201310201401201404201407
per share eps 1.959-0.388-0.384-0.0652.423-0.420-0.383-0.7833.309-0.420
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.250
Adj_EPS 2.068-0.411-0.403-0.0692.530-0.437-0.398-0.8133.389-0.428
200910201001201004201007201010201101201104201107201110201201
per share eps -0.3800.1502.060-0.409-0.360-0.0422.120-0.573-0.473-0.011
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS -0.4270.1682.295-0.456-0.400-0.0462.289-0.616-0.507-0.012
200704200707200710200801200804200807200810200901200904200907
per share eps -0.260-0.930-1.550-0.1401.680-0.410-0.4100.1402.120-0.400
CPI 206.686208.299208.936211.080214.823219.964216.573211.143213.240215.351
Adj_EPS -0.305-1.084-1.802-0.1611.899-0.453-0.4600.1612.414-0.451

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

H&R Block Inc Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ShillerPE 21.4725.1415.9917.8515.9213.9326.2428.3631.7921.67

H&R Block Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ShillerPE 33.9438.2931.7935.6341.3939.5921.6725.4124.5223.63
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK