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

As of today, JPMorgan Chase & Co's current share price is $54.38. JPMorgan Chase & Co's E10 for the quarter that ended in Dec. 2014 was $4.39. JPMorgan Chase & Co's Shiller P/E Ratio for today is 12.39.

JPM' s 10-Year Shiller P/E Ratio Range
Min: 5.42   Max: 23.15
Current: 12.39

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 14.41.

JPM's Shiller P/E Ratiois ranked higher than
94% of the 2664 Companies
in the Global Banks - Global industry.

( Industry Median: 0.00 vs. JPM: 12.39 )

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 Dec. 2014 was $1.188. 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 $4.39 for the trailing six years ended in Dec. 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
=54.38/4.39
=12.39

* 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 Dec14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=1.19/235.51*235.189
=1.188

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

Current CPI = 235.189.

JPMorgan Chase & Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 1.4001.3931.5901.600-0.1701.3001.2801.4601.3601.190
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031235.510
Adj_EPS 1.4231.4271.6071.612-0.1711.3121.2741.4411.3441.188
201003201006201009201012201103201106201109201112201203201206
per share eps 0.7401.0901.0101.1211.2801.2701.0200.8991.1901.210
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.8001.1761.0871.2031.3471.3231.0570.9371.2201.240
200903200906200909200912
per share eps 0.4000.2800.8200.742
CPI 212.709215.693215.969215.949
Adj_EPS 0.4420.3050.8930.808

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 19.3921.5914.9810.5814.8713.149.2111.6415.7214.39

JPMorgan Chase & Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 10.6911.6412.4013.6413.9815.7215.7914.2914.3414.39
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