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

As of today, Tesco PLC's current share price is $6.80. Tesco PLC's E10 for the quarter that ended in Feb. 2016 was $0.55. Tesco PLC's Shiller P/E Ratio for today is 12.36.

TSCDY' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 6.64   Max: 32.47
Current: 13.09

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 16.24.

TSCDY's Shiller P/E Ratio is ranked higher than
75% of the 79 Companies
in the Global Grocery Stores industry.

( Industry Median: 21.46 vs. TSCDY: 13.09 )

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
=6.80/0.55
=12.36

* 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. 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

200702200802200902201002201102201202201302201402201502201602
per share eps 1.3821.5681.1691.3691.5971.6520.0170.599-3.30.073
CPI 203.499211.693212.193216.741221.309227.663232.166234.781234.722237.111
Adj_EPS 1.6111.7561.3061.4971.7111.7210.0170.605-3.2920.073

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

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

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ShillerPE 28.4823.1317.4919.9617.2512.1314.8613.3115.7713.35

Tesco PLC Semi-Annual Data

Aug11Feb12Aug12Feb13Aug13Feb14Aug14Feb15Aug15Feb16
ShillerPE 0.0012.1310.5214.860.0013.310.0015.770.0013.35
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