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JPMorgan Chase & Co (NYSE:JPM)
Shiller P/E Ratio
14.80 (As of Today)

As of today, JPMorgan Chase & Co's current share price is $59.97. JPMorgan Chase & Co's E10 for the quarter that ended in Jun. 2014 was $4.04. JPMorgan Chase & Co's Shiller P/E Ratio for today is 14.80.

JPM' s 10-Year Shiller P/E Ratio Range
Min: 5.42   Max: 23.15
Current: 14.8

5.42
23.15

During the past 13 years, JPMorgan Chase & Co's highest Shiller P/E Ratio was 23.15. The lowest was 5.42. And the median was 14.48.

JPM's Shiller P/E Ratiois ranked higher than
81% of the 1093 Companies
in the Global Banks - Global industry.

( Industry Median: 16.35 vs. JPM: 14.80 )

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.

JPMorgan Chase & Co's adjusted earnings per share data for the three months ended in Jun. 2014 was $1.458. 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 $4.04 for the trailing six years ended in Jun. 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.

JPMorgan Chase & Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=59.97/4.04
=14.84

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

JPMorgan Chase & Co's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, JPMorgan Chase & Co's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=1.46/238.343*238.064
=1.458

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

Current CPI = 238.064.

JPMorgan Chase & Co Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 1.1901.2101.4001.3931.5901.600-0.1701.3001.2801.460
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.2351.2551.4401.4441.6261.631-0.1731.3281.2901.458
200909200912201003201006201009201012201103201106201109201112
per share eps 0.8200.7420.7401.0901.0101.1211.2801.2701.0200.899
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.9040.8180.8091.1911.1011.2181.3641.3391.0700.948
200809200812200903200906
per share eps 0.0900.0670.4000.280
CPI 218.783210.228212.709215.693
Adj_EPS 0.0980.0760.4480.309

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.

JPMorgan Chase & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 16.8519.3321.5614.9710.5714.8713.269.2011.7315.69

JPMorgan Chase & Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 12.499.6610.6711.7312.3813.6214.0915.6915.7614.25
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