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

As of today, Tesco PLC's current share price is $9.55. Tesco PLC's E10 for the quarter that ended in Feb. 2015 was $0.38. Tesco PLC's Shiller P/E Ratio for today is 25.13.

TSCDY' s 10-Year Shiller P/E Ratio Range
Min: 6.91   Max: 31.38
Current: 27.16

6.91
31.38

During the past 13 years, Tesco PLC's highest Shiller P/E Ratio was 31.38. The lowest was 6.91. And the median was 16.80.

TSCDY's Shiller P/E Ratiois ranked lower than
60% of the 209 Companies
in the Global Grocery Stores industry.

( Industry Median: 23.07 vs. TSCDY: 27.16 )

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 Feb15 was $-3.290. 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 $0.38 for the trailing six years ended in Feb15.


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
=9.55/0.38
=25.13

* 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. 2015 is calculated as:

For example, Tesco PLC's adjusted earnings per share data for the fiscal year that ended in Feb15 was:

Adj_EPS=Earnigns per Share/CPI of Feb15*CPI of Current
=-3.25920245399/234.722*236.959
=-3.290

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.959.

Tesco PLC Annual Data

201002201102201202201302201402201502
per share eps 1.3691.5971.6520.0170.599-3.3
CPI 216.741221.309227.663232.166234.781234.722
Adj_EPS 1.4961.7101.7200.0170.605-3.290

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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
ShillerPE 21.7524.2119.4814.8216.7414.5810.3413.8013.6432.53

Tesco PLC Semi-Annual Data

Aug10Feb11Aug11Feb12Aug12Feb13Aug13Feb14Aug14Feb15
ShillerPE 0.0014.580.0010.3410.5213.800.0013.640.0032.53
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