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Walgreen Co (NYSE:WAG)
Shiller P/E Ratio
30.36 (As of Today)

As of today, Walgreen Co's current share price is \$74.38. Walgreen Co's E10 for the quarter that ended in Aug. 2014 was \$2.45. Walgreen Co's Shiller P/E Ratio for today is 30.36.

WAG' s 10-Year Shiller P/E Ratio Range
Min: 12.12   Max: 42.41
Current: 30.5

12.12
42.41

During the past 13 years, Walgreen Co's highest Shiller P/E Ratio was 42.41. The lowest was 12.12. And the median was 21.08.

WAG's Shiller P/E Ratiois ranked higher than
81% of the 589 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 31.75 vs. WAG: 30.50 )

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.

Walgreen Co's adjusted earnings per share data for the three months ended in Aug. 2014 was \$-0.248. 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 \$2.45 for the trailing six years ended in Aug. 2014.

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.

Walgreen Co's Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 74.38 / 2.45 = 30.36

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

Walgreen Co's E10 for the fiscal year that ended in Aug14 is calculated as:

For example, Walgreen Co's adjusted earnings per share data for the three months ended in Aug. 2014 was:

 Adj_EPS = Earnigns per Share / CPI of Aug. 2014 * CPI of Current = -0.25 / 237.852 * 235.51 = -0.248

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

Current CPI = 235.51.

Walgreen Co Quarterly Data

 201205 201208 201211 201302 201305 201308 201311 201402 201405 201408 per share eps 0.62 0.394 0.43 0.79 0.650 0.686 0.720 0.780 0.750 -0.250 CPI 229.815 230.379 230.221 232.166 232.945 233.877 233.069 234.781 237.900 237.852 Adj_EPS 0.635 0.403 0.44 0.801 0.657 0.691 0.728 0.782 0.742 -0.248 200911 201002 201005 201008 201011 201102 201105 201108 201111 201202 per share eps 0.49 0.68 0.47 0.48 0.620 0.800 0.650 0.869 0.630 0.780 CPI 216.33 216.741 218.178 218.312 218.803 221.309 225.964 226.545 226.230 227.663 Adj_EPS 0.533 0.739 0.507 0.518 0.667 0.851 0.677 0.903 0.656 0.807 200811 200902 200905 200908 per share eps 0.41 0.65 0.53 0.439 CPI 212.425 212.193 213.856 215.834 Adj_EPS 0.455 0.721 0.584 0.479

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

Historical Data

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

Walgreen Co Annual Data

 Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 ShillerPE 39.43 36.53 28.80 19.99 17.75 13.26 15.28 14.73 19.28 24.68

Walgreen Co Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 ShillerPE 12.51 14.73 14.03 16.72 19.48 19.28 23.42 26.59 27.66 24.68
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