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Morgan Stanley (NYSE:MS)
Shiller P/E Ratio
12.22 (As of Today)

As of today, Morgan Stanley's current share price is $26.40. Morgan Stanley's E10 for the quarter that ended in Dec. 2015 was $2.16. Morgan Stanley's Shiller P/E Ratio for today is 12.22.

MS' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 2   Max: 16.82
Current: 12.22

2
16.82

During the past 13 years, Morgan Stanley's highest Shiller P/E Ratio was 16.82. The lowest was 2.00. And the median was 8.76.

MS's Shiller P/E Ratio is ranked higher than
72% of the 82 Companies
in the Global Capital Markets industry.

( Industry Median: 22.28 vs. MS: 12.22 )

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.

Morgan Stanley's adjusted earnings per share data for the three months ended in Dec. 2015 was $0.388. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.16 for the trailing ten years ended in Dec. 2015.


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.

Morgan Stanley's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=26.40/2.16
=12.22

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Morgan Stanley's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Morgan Stanley's adjusted earnings per share data for the three months ended in Dec. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=0.388/236.525*236.525
=0.388

Current CPI (Dec. 2015) = 236.525.

Morgan Stanley Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.0180.7400.9200.830-0.9101.1800.8500.4800.3880.550
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.0180.7410.9130.825-0.9171.1820.8420.4770.3880.546
201106201109201112201203201206201209201212201303201306201309
per share eps -0.3801.150-0.145-0.0600.290-0.5500.2810.4800.4100.450
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS -0.3981.199-0.152-0.0620.299-0.5620.2890.4880.4150.455
200811200903200906200909200912201003201006201009201012201103
per share eps -2.346-0.570-1.1000.3800.3040.9901.090-0.0700.4330.500
CPI 212.425212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS -2.612-0.634-1.2060.4160.3331.0761.183-0.0760.4670.529
200605200608200611200702200705200708200711200802200805200808
per share eps 1.7501.7502.0792.5102.4501.440-3.6081.4500.9501.320
CPI 202.500203.900201.500203.499207.949207.917210.177211.693216.632219.086
Adj_EPS 2.0442.0302.4402.9172.7871.638-4.0601.6201.0371.425

Add all the adjusted EPS together and divide 10 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.

Morgan Stanley Annual Data

Nov06Nov07Nov08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 14.8011.763.437.927.914.656.4411.5216.1614.72

Morgan Stanley Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 11.5211.5012.1313.0316.1614.9716.2513.1514.720.00
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