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Tesco PLC (OTCPK:TSCDY)
Shiller P/E Ratio
11.30 (As of Today)

As of today, Tesco PLC's current share price is $14.22. Tesco PLC's E10 for the quarter that ended in Feb. 2014 was $1.13. Tesco PLC's Shiller P/E Ratio for today is 11.30.

TSCDY' s 10-Year Shiller P/E Ratio Range
Min: 9.65   Max: 28.12
Current: 11.3

9.65
28.12

During the past 13 years, Tesco PLC's highest Shiller P/E Ratio was 28.12. The lowest was 9.65. And the median was 17.20.

TSCDY's Shiller P/E Ratiois ranked higher than
97% of the 515 Companies
in the Global Grocery Stores industry.

( Industry Median: 56.23 vs. TSCDY: 11.30 )

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.

Tesco PLC's adjusted earnings per share data of for the fiscal year that ended in Feb14 was $0.614. 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 $1.13 for the trailing six years ended in Feb14.


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.

Tesco PLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=14.22/1.13
=12.58

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

Tesco PLC's E10 for the quarter that ended in Feb. 2014 is calculated as:

For example, Tesco PLC's adjusted earnings per share data for the fiscal year that ended in Feb14 was:

Adj_EPS=Earnigns per Share/CPI of Feb14*CPI of Current
=0.601328903654/234.781*239.556
=0.614

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

Current CPI = 239.556.

Tesco PLC Annual Data

200902201002201102201202201302201402
per share eps 1.1471.3191.5991.6520.0690.601
CPI 212.193216.741221.309227.663232.166234.781
Adj_EPS 1.2951.4581.7311.7380.0720.614

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.

Tesco PLC Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ShillerPE 22.3521.8224.2719.3914.7716.8214.5310.3213.7013.52

Tesco PLC Semi-Annual Data

Aug09Feb10Aug10Feb11Aug11Feb12Aug12Feb13Aug13Feb14
ShillerPE 0.0016.820.0014.530.0010.3210.5213.700.0013.52
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