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

As of today, Morgan Stanley's current share price is $31.04. Morgan Stanley's E10 for the quarter that ended in Jun. 2016 was $1.95. Morgan Stanley's Shiller P/E Ratio for today is 15.92.

MS' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 2.02   Max: 16.82
Current: 15.98

2.02
16.82

During the past 13 years, Morgan Stanley's highest Shiller P/E Ratio was 16.82. The lowest was 2.02. And the median was 8.90.

MS's Shiller P/E Ratio is ranked higher than
69% of the 87 Companies
in the Global Capital Markets industry.

( Industry Median: 23.67 vs. MS: 15.98 )

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 Jun. 2016 was $0.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.95 for the trailing ten years ended in Jun. 2016.


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
=31.04/1.95
=15.92

* 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 Dec15 is calculated as:

For example, Morgan Stanley's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=0.75/241.038*241.038
=0.750

Current CPI (Jun. 2016) = 241.038.

Morgan Stanley Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.7400.9200.830-0.9001.1800.8500.4800.3900.5500.750
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.7550.9300.840-0.9241.2050.8590.4860.3970.5570.750
201109201112201203201206201209201212201303201306201309201312
per share eps 1.150-0.220-0.0600.290-0.5500.3000.4800.4100.4500.020
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.222-0.235-0.0630.305-0.5730.3150.4970.4230.4630.021
200903200906200909200912201003201006201009201012201103201106
per share eps -0.570-1.1000.3800.3600.9901.090-0.0700.4200.500-0.380
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS -0.646-1.2290.4240.4021.0961.205-0.0770.4620.539-0.406
200608200611200702200705200708200711200802200805200808200811
per share eps 1.7502.0802.5102.4501.440-3.6001.4500.9501.320-2.290
CPI 203.900201.500203.499207.949207.917210.177211.693216.632219.086212.425
Adj_EPS 2.0692.4882.9732.8401.669-4.1291.6511.0571.452-2.598

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 14.8011.763.427.877.924.666.4511.4216.0114.72

Morgan Stanley Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 11.5212.0312.9316.0114.9816.2613.0314.7212.1413.34
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