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

As of today, JPMorgan Chase & Co's current share price is $61.93. JPMorgan Chase & Co's E10 for the quarter that ended in Sep. 2014 was $4.21. JPMorgan Chase & Co's Shiller P/E Ratio for today is 14.71.

JPM' s 10-Year Shiller P/E Ratio Range
Min: 5.42   Max: 23.15
Current: 14.72

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
91% of the 2646 Companies
in the Global Banks - Global industry.

( Industry Median: 9999.00 vs. JPM: 14.72 )

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 Sep. 2014 was $1.346. 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 $4.21 for the trailing six years ended in Sep. 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
=61.93/4.21
=14.71

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=1.36/238.031*235.51
=1.346

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

Current CPI = 235.51.

JPMorgan Chase & Co Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.2101.4001.3931.5901.600-0.1701.3001.2801.4601.360
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.2421.4251.4291.6091.614-0.1711.3141.2761.4431.346
200912201003201006201009201012201103201106201109201112201203
per share eps 0.7420.7401.0901.0101.1211.2801.2701.0200.8991.190
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.8090.8011.1781.0891.2051.3491.3251.0590.9381.222
200812200903200906200909
per share eps 0.0670.4000.2800.820
CPI 210.228212.709215.693215.969
Adj_EPS 0.0750.4430.3060.894

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 16.8619.3521.5814.9810.5814.8613.149.2111.7315.70

JPMorgan Chase & Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 9.6710.6811.7312.3913.6214.1015.7015.7714.2814.32
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