Switch to:
GuruFocus has detected 3 Warning Signs with Tesco PLC \$TSCDY.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Tesco PLC (OTCPK:TSCDY)
Shiller PE Ratio
13.00 (As of Today)

As of today, Tesco PLC's current share price is \$7.15. Tesco PLC's E10 for the quarter that ended in Aug. 2016 was \$0.55. Tesco PLC's Shiller P/E Ratio for today is 13.00.

TSCDY' s Shiller PE Ratio Range Over the Past 10 Years
Min: 6.64   Max: 32.47
Current: 14.18

6.64
32.47

During the past 13 years, Tesco PLC's highest Shiller P/E Ratio was 32.47. The lowest was 6.64. And the median was 15.87.

TSCDY's Shiller PE Ratio is ranked higher than
77% of the 79 Companies
in the Global Grocery Stores industry.

( Industry Median: 22.66 vs. TSCDY: 14.18 )

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 Feb16 was \$0.073. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$0.55 for the trailing ten years ended in Feb16.

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 = 7.15 / 0.55 = 13.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Tesco PLC's E10 for the quarter that ended in Aug. 2016 is calculated as:

For example, Tesco PLC's adjusted earnings per share data for the fiscal year that ended in Feb16 was:

 Adj_EPS = Earnigns per Share / CPI of Feb16 (Change) * Current CPI (Feb16) = 0.0728571428571 / 237.111 * 237.111 = 0.073

Current CPI (Feb16) = 237.111.

Tesco PLC Annual Data

 200702 200802 200902 201002 201102 201202 201302 201402 201502 201602 per share eps 1.382 1.568 1.169 1.369 1.597 1.652 0.017 0.599 -3.3 0.073 CPI 203.499 211.693 212.193 216.741 221.309 227.663 232.166 234.781 234.722 237.111 Adj_EPS 1.611 1.756 1.306 1.497 1.711 1.721 0.017 0.605 -3.292 0.073

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Tesco PLC Annual Data

 Feb07 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 ShillerPE 28.51 23.00 17.53 20.01 17.16 12.07 14.79 13.38 15.90 13.47

Tesco PLC Semi-Annual Data

 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 ShillerPE 12.07 10.52 14.79 0.00 13.38 0.00 15.90 0.00 13.47 0.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)