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

As of today, JPMorgan Chase & Co's current share price is $61.28. JPMorgan Chase & Co's E10 for the quarter that ended in Sep. 2014 was $4.30. JPMorgan Chase & Co's Shiller P/E Ratio for today is 14.25.

JPM' s 10-Year Shiller P/E Ratio Range
Min: 5.36   Max: 22.88
Current: 14.4

5.36
22.88

During the past 13 years, JPMorgan Chase & Co's highest Shiller P/E Ratio was 22.88. The lowest was 5.36. And the median was 14.15.

JPM's Shiller P/E Ratiois ranked higher than
92% of the 2695 Companies
in the Global Banks - Global industry.

( Industry Median: 0.00 vs. JPM: 14.40 )

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 $1.336. 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 $4.30 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
=61.28/4.30
=14.25

* 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*233.808
=1.336

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

Current CPI = 233.808.

JPMorgan Chase & Co Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 1.4001.3931.5901.600-0.1701.3001.2801.4601.3601.190
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 1.4151.4191.5971.602-0.1701.3041.2671.4321.3361.185
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 0.7951.1691.0811.1961.3391.3151.0510.9311.2131.233
200903200906200909200912
per share eps 0.4000.2800.8200.742
CPI 212.709215.693215.969215.949
Adj_EPS 0.4400.3040.8880.803

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 18.6621.5714.9610.4814.7113.149.2011.5615.4614.06

JPMorgan Chase & Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 10.5211.5612.2013.4213.8815.4615.5414.0814.0114.06
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