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Western Digital Corp (NAS:WDC)
Shiller P/E Ratio
8.83 (As of Today)

As of today, Western Digital Corp's current share price is $40.87. Western Digital Corp's E10 for the quarter that ended in Dec. 2015 was $4.63. Western Digital Corp's Shiller P/E Ratio for today is 8.83.

WDC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 8.75   Max: 3893
Current: 8.83

8.75
3893

During the past 13 years, Western Digital Corp's highest Shiller P/E Ratio was 3893.00. The lowest was 8.75. And the median was 18.62.

WDC's Shiller P/E Ratio is ranked higher than
85% of the 313 Companies
in the Global Data Storage industry.

( Industry Median: 26.37 vs. WDC: 8.83 )

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.

Western Digital Corp's adjusted earnings per share data for the three months ended in Dec. 2015 was $1.070. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.63 for the trailing ten years ended in Dec. 2015.


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.

Western Digital Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=40.87/4.63
=8.83

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

Western Digital Corp's E10 for the fiscal year that ended in Jun15 is calculated as:

For example, Western Digital Corp's adjusted earnings per share data for the three months ended in Dec. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=1.07/236.525*236.525
=1.070

Current CPI (Dec. 2015) = 236.525.

Western Digital Corp Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 1.7701.5501.3101.7601.8401.6300.9401.2101.0700.320
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525237.208
Adj_EPS 1.7961.5521.3001.7491.8531.6330.9321.2031.0700.319
201106201109201112201203201206201209201212201303201306201309
per share eps 0.6721.0100.6101.9602.8652.0601.3601.600-1.1132.050
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.7041.0530.6392.0212.9532.1061.4011.626-1.1272.071
200812200903200906200909200912201003201006201009201012201103
per share eps 0.0600.2200.8561.2501.8501.7101.1190.8400.9600.620
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.0680.2450.9391.3692.0261.8581.2140.9101.0360.656
200606200609200612200703200706200709200712200803200806200809
per share eps 0.5290.4600.5700.5300.9380.3101.3501.2300.9420.930
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.6170.5360.6680.6101.0650.3521.5201.3621.0181.005

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.

Western Digital Corp Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ShillerPE 0.000.002,312.1328.0515.7915.5310.1018.6323.1617.28

Western Digital Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 22.8623.7323.1623.4926.0220.5917.2817.3612.980.00
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