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

As of today, Western Digital Corp's current share price is $95.55. Western Digital Corp's E10 for the quarter that ended in Mar. 2015 was $5.57. Western Digital Corp's Shiller P/E Ratio for today is 17.15.

WDC' s 10-Year Shiller P/E Ratio Range
Min: 5.09   Max: 134.09
Current: 17

5.09
134.09

During the past 13 years, Western Digital Corp's highest Shiller P/E Ratio was 134.09. The lowest was 5.09. And the median was 15.69.

WDC's Shiller P/E Ratiois ranked higher than
91% of the 3194 Companies
in the Global Data Storage industry.

( Industry Median: 0.00 vs. WDC: 17.00 )

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 Mar. 2015 was $1.637. 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 $5.57 for the trailing six years ended in Mar. 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
=95.55/5.57
=17.15

* 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 Jun14 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=1.63/236.119*237.167
=1.637

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

Current CPI = 237.167.

Western Digital Corp Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 1.3601.600-1.1132.0501.7701.5501.3101.7601.8401.630
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 1.4051.630-1.1302.0761.8011.5561.3041.7541.8581.637
201006201009201012201103201106201109201112201203201206201209
per share eps 1.1190.8400.9600.6200.6721.0100.6101.9602.8652.060
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 1.2180.9121.0390.6580.7061.0560.6412.0262.9612.111
200906200909200912201003
per share eps 0.8561.2501.8501.710
CPI 215.693215.969215.949217.631
Adj_EPS 0.9411.3732.0321.864

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.

Western Digital Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ShillerPE 276.0828.3316.0318.1112.9710.3310.757.2814.0718.79

Western Digital Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 9.3210.5414.0713.3817.7118.8818.7919.3220.9516.35
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