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

As of today, H&R Block Inc's current share price is $32.03. H&R Block Inc's E10 for the quarter that ended in Jan. 2015 was $1.39. H&R Block Inc's Shiller P/E Ratio for today is 23.04.

HRB' s 10-Year Shiller P/E Ratio Range
Min: 14.76   Max: 58.84
Current: 23.11

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 24.26.

HRB's Shiller P/E Ratiois ranked higher than
89% of the 89 Companies
in the Global Personal Services industry.

( Industry Median: 0.00 vs. HRB: 23.11 )

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. 2015 was $-0.130. 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 $1.39 for the trailing six years ended in Jan. 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
=32.03/1.39
=23.04

* 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 Jan. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=-0.13/234.143*233.808
=-0.130

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

Current CPI = 233.808.

H&R Block Inc Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps -0.390-0.0702.393-0.420-0.390-0.7803.215-0.420-0.410-0.130
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433234.143
Adj_EPS -0.394-0.0712.406-0.420-0.390-0.7803.171-0.412-0.404-0.130
201004201007201010201101201104201107201110201201201204201207
per share eps 2.093-0.410-0.360-0.0402.142-0.570-0.470-0.0101.980-0.390
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS 2.245-0.440-0.385-0.0422.227-0.590-0.485-0.0102.012-0.398
200904200907200910201001
per share eps 2.056-0.400-0.3800.150
CPI 213.240215.351216.177216.687
Adj_EPS 2.254-0.434-0.4110.162

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 19.5615.9220.6829.9319.6428.0432.4433.8229.1319.76

H&R Block Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 36.8845.5829.1329.5022.0525.6019.7622.0522.5424.74
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