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

As of today, WisdomTree Investments Inc's current share price is $14.59. WisdomTree Investments Inc's E10 for the quarter that ended in Sep. 2014 was $0.17. WisdomTree Investments Inc's Shiller P/E Ratio for today is 85.82.

WETF' s 10-Year Shiller P/E Ratio Range
Min: 60.65   Max: 156.6
Current: 87.3

60.65
156.6

During the past 11 years, WisdomTree Investments Inc's highest Shiller P/E Ratio was 156.60. The lowest was 60.65. And the median was 87.54.

WETF's Shiller P/E Ratiois ranked higher than
73% of the 1817 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. WETF: 87.30 )

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. 2014 was $0.079. 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 $0.17 for the trailing six years ended in Sep. 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.

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

Shiller P/E Ratio=Share Price/E10
=14.59/0.17
=85.82

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

WisdomTree Investments Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, WisdomTree Investments Inc's adjusted earnings per share data for the three months ended in Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.08/238.031*235.51
=0.079

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

Current CPI = 235.51.

WisdomTree Investments Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.0000.0300.0380.0600.0900.1100.1180.2200.0800.080
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.0000.0310.0390.0610.0910.1110.1190.2190.0790.079
200303200306201006201009201012201103201106201109201112201203
per share eps -0.010-0.040-0.020-0.010-0.0050.0000.0100.0100.0070.010
CPI 184.200183.700217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -0.013-0.051-0.022-0.011-0.0050.0000.0100.0100.0070.010
200203200206200209200212
per share eps 0.0300.0400.0200.026
CPI 178.800179.900181.000180.900
Adj_EPS 0.0400.0520.0260.034

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.

WisdomTree Investments Inc Annual Data

Dec97Dec98Dec99Dec00Dec01Dec02Dec10Dec11Dec12Dec13
ShillerPE 0.000.000.000.000.000.000.000.000.000.00

WisdomTree Investments Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 0.000.000.000.000.000.000.00131.9990.3768.10
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