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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 $55.96. JPMorgan Chase & Co's E10 for the quarter that ended in Dec. 2013 was $3.79. JPMorgan Chase & Co's Shiller P/E Ratio for today is 14.80.

JPM' s 10-Year Shiller P/E Ratio Range
Min: 5.35   Max: 22.88
Current: 14.8

5.35
22.88

During the past 13 years, JPMorgan Chase & Co's highest Shiller P/E Ratio was 22.88. The lowest was 5.35. And the median was 14.16.

JPM's Shiller P/E Ratiois ranked higher than
75% of the 841 Companies
in the Global Banks - Global industry.

( Industry Median: 17.04 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 Dec. 2013 was $1.319. 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 $3.79 for the trailing six years ended in Dec. 2013.


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
=55.96/3.79
=14.77

* 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 Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=1.3/233.049*236.511
=1.319

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

Current CPI = 236.511.

JPMorgan Chase & Co Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 1.0200.8991.3101.2101.4001.3931.5901.600-0.1701.300
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.0630.9421.3511.2471.4311.4351.6161.621-0.1721.319
200903200906200909200912201003201006201009201012201103201106
per share eps 0.4000.2800.8200.7420.7401.0901.0101.1211.2801.270
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.4450.3070.8980.8130.8041.1831.0941.2101.3551.331
200803200806200809200812
per share eps 0.6800.5400.1100.183
CPI 213.528218.815218.783210.228
Adj_EPS 0.7530.5840.1190.206

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 15.7818.6321.5315.0610.4514.8113.109.1811.5415.44

JPMorgan Chase & Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 8.259.1812.279.5010.5011.5412.2913.4013.8615.44
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