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

As of today, H&R Block Inc's current share price is $34.23. H&R Block Inc's E10 for the quarter that ended in Oct. 2014 was $1.43. H&R Block Inc's Shiller P/E Ratio for today is 23.94.

HRB' s 10-Year Shiller P/E Ratio Range
Min: 14.86   Max: 58.84
Current: 23.92

14.86
58.84

During the past 13 years, H&R Block Inc's highest Shiller P/E Ratio was 58.84. The lowest was 14.86. And the median was 24.42.

HRB's Shiller P/E Ratiois ranked higher than
86% of the 87 Companies
in the Global Personal Services industry.

( Industry Median: 0.00 vs. HRB: 23.92 )

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 Oct. 2014 was $-0.406. 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 $1.43 for the trailing six years ended in Oct. 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
=34.23/1.43
=23.94

* 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 Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=-0.41/237.433*235.189
=-0.406

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

Current CPI = 235.189.

H&R Block Inc Quarterly Data

201207201210201301201304201307201310201401201404201407201410
per share eps -0.390-0.390-0.0702.393-0.420-0.390-0.7803.215-0.420-0.410
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250237.433
Adj_EPS -0.400-0.397-0.0712.420-0.423-0.393-0.7843.189-0.415-0.406
201001201004201007201010201101201104201107201110201201201204
per share eps 0.1502.093-0.410-0.360-0.0402.142-0.570-0.470-0.0101.980
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 0.1632.258-0.442-0.387-0.0432.240-0.593-0.488-0.0102.024
200901200904200907200910
per share eps 0.1402.056-0.400-0.380
CPI 211.143213.240215.351216.177
Adj_EPS 0.1562.268-0.437-0.413

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 19.5815.9420.7129.8119.6228.3032.7734.1729.2519.79

H&R Block Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ShillerPE 36.8237.5845.9729.2529.8822.2925.9119.7922.7722.12
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