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

As of today, H&R Block Inc's current share price is $33.60. 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 23.40.

HRB' s 10-Year Shiller P/E Ratio Range
Min: 14.86   Max: 60.04
Current: 23.4

14.86
60.04

During the past 13 years, H&R Block Inc's highest Shiller P/E Ratio was 60.04. The lowest was 14.86. And the median was 25.14.

HRB's Shiller P/E Ratiois ranked higher than
87% of the 92 Companies
in the Global Personal Services industry.

( Industry Median: 9999.00 vs. HRB: 23.40 )

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.

H&R Block Inc's adjusted earnings per share data for the three months ended in Apr. 2014 was $3.244. 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
=33.60/1.45
=23.17

* 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*239.229
=3.244

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

Current CPI = 239.229.

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 -0.0112.059-0.407-0.403-0.0732.462-0.430-0.399-0.7983.244
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 -0.444-0.4210.1662.297-0.450-0.394-0.0432.278-0.604-0.497
200807200810200901200904
per share eps -0.410-0.4100.1402.056
CPI 219.964216.573211.143213.240
Adj_EPS -0.446-0.4530.1592.307

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 19.5715.9520.7329.8619.6428.3132.6034.3229.2919.66

H&R Block Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ShillerPE 39.8834.3236.5937.3146.0829.2929.6222.0925.6519.66
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