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WisdomTree Investments Inc (NAS:WETF)
Shiller P/E Ratio
256.40 (As of Today)

As of today, WisdomTree Investments Inc's current share price is $12.82. WisdomTree Investments Inc's E10 for the quarter that ended in Sep. 2016 was $0.05. WisdomTree Investments Inc's Shiller P/E Ratio for today is 256.40.

WETF' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.29   Max: 286.95
Current: 276.79

18.29
286.95

During the past 13 years, WisdomTree Investments Inc's highest Shiller P/E Ratio was 286.95. The lowest was 18.29. And the median was 30.08.

WETF's Shiller P/E Ratio is ranked lower than
97% of the 385 Companies
in the Global Asset Management industry.

( Industry Median: 18.17 vs. WETF: 276.79 )

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.

WisdomTree Investments Inc's adjusted earnings per share data for the three months ended in Sep. 2016 was $0.060. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.05 for the trailing ten years ended in Sep. 2016.


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.

WisdomTree Investments Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=12.82/0.05
=256.40

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

WisdomTree Investments Inc's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, WisdomTree Investments Inc's adjusted earnings per share data for the three months ended in Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=0.06/241.428*241.428
=0.060

Current CPI (Sep. 2016) = 241.428.

WisdomTree Investments Inc Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 0.0800.0800.0700.0900.1800.1700.1400.0900.0300.060
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 0.0810.0810.0720.0920.1820.1720.1430.0910.0300.060
201112201203201206201209201212201303201306201309201312201403
per share eps 0.0000.0100.0000.0300.0400.0600.0900.1100.1200.220
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.0000.0110.0000.0310.0420.0620.0930.1130.1240.225
200209200212200303200306201006201009201012201103201106201109
per share eps 0.0200.010-0.010-0.032-0.020-0.010-0.0100.0000.0100.010
CPI 181.000180.900184.200183.700217.965218.439219.179223.467225.722226.889
Adj_EPS 0.0270.013-0.013-0.042-0.022-0.011-0.0110.0000.0110.011
200003200006200009200012200103200106200109200112200203200206
per share eps -0.154-0.1800.440-0.470-0.184-0.257-0.090-0.0800.0300.040
CPI 171.200172.400173.700174.000176.200178.000178.300176.700178.800179.900
Adj_EPS -0.217-0.2520.612-0.652-0.252-0.349-0.122-0.1090.0410.054

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 local exchange's currency.

WisdomTree Investments Inc Annual Data

Dec99Dec00Dec01Dec02Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.000.000.000.000.000.000.000.0036.32

WisdomTree Investments Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 0.000.000.000.000.000.0036.3220.270.00226.51
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