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

As of today, JPMorgan Chase & Co's current share price is $57.67. JPMorgan Chase & Co's E10 for the quarter that ended in Mar. 2014 was $3.91. JPMorgan Chase & Co's Shiller P/E Ratio for today is 15.10.

JPM' s 10-Year Shiller P/E Ratio Range
Min: 5.35   Max: 22.78
Current: 15.1

5.35
22.78

During the past 13 years, JPMorgan Chase & Co's highest Shiller P/E Ratio was 22.78. The lowest was 5.35. And the median was 14.25.

JPM's Shiller P/E Ratiois ranked higher than
90% of the 1833 Companies
in the Global Banks - Global industry.

( Industry Median: 98.15 vs. JPM: 15.10 )

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 Mar. 2014 was $1.294. 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 $3.91 for the trailing six years ended in Mar. 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
=57.67/3.91
=14.75

* 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 Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=1.28/236.293*238.786
=1.294

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

Current CPI = 238.786.

JPMorgan Chase & Co Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.8991.3101.2101.4001.3931.5901.600-0.1701.3001.280
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.9511.3641.2591.4451.4491.6311.636-0.1731.3321.294
200906200909200912201003201006201009201012201103201106201109
per share eps 0.2800.8200.7420.7401.0901.0101.1211.2801.2701.020
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.3100.9070.8200.8121.1941.1041.2211.3681.3441.073
200806200809200812200903
per share eps 0.5400.1100.1830.400
CPI 218.815218.783210.228212.709
Adj_EPS 0.5890.1200.2080.449

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 15.7418.5921.4715.0310.5314.7913.089.1711.5415.44

JPMorgan Chase & Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 9.1712.279.5010.5011.5412.2913.4013.8615.4415.52
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