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Wal-Mart Stores Inc (NYSE:WMT)
Shiller P/E Ratio
16.23 (As of Today)

As of today, Wal-Mart Stores Inc's current share price is $76.41. Wal-Mart Stores Inc's E10 for the quarter that ended in Jul. 2014 was $4.71. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 16.23.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.41   Max: 39.04
Current: 16.23

13.41
39.04

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 39.04. The lowest was 13.41. And the median was 17.81.

WMT's Shiller P/E Ratiois ranked higher than
92% of the 535 Companies
in the Global Discount Stores industry.

( Industry Median: 34.28 vs. WMT: 16.23 )

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.

Wal-Mart Stores Inc's adjusted earnings per share data for the three months ended in Jul. 2014 was $1.259. 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 $4.71 for the trailing six years ended in Jul. 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.

Wal-Mart Stores Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=76.41/4.71
=16.22

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

Wal-Mart Stores Inc's E10 for the fiscal year that ended in Jan14 is calculated as:

For example, Wal-Mart Stores Inc's adjusted earnings per share data for the three months ended in Jul. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jul. 2014*CPI of Current
=1.26/238.25*238.064
=1.259

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.064.

Wal-Mart Stores Inc Quarterly Data

201204201207201210201301201304201307201310201401201404201407
per share eps 1.0901.1801.0801.6701.1401.2401.1401.3621.1101.260
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.250
Adj_EPS 1.1281.2261.1121.7261.1671.2641.1621.3861.1151.259
200910201001201004201007201010201101201104201107201110201201
per share eps 0.8101.2470.8700.9700.9501.7000.9701.0900.9601.503
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS 0.8921.3700.9501.0591.0341.8381.0271.1491.0091.579
200810200901200904200907
per share eps 0.8000.9630.7700.890
CPI 216.573211.143213.240215.351
Adj_EPS 0.8791.0860.8600.984

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.

Wal-Mart Stores Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ShillerPE 28.8121.8520.5419.0916.4416.8915.9815.9416.4716.52

Wal-Mart Stores Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 14.7818.3818.0816.4717.8717.6217.1216.5217.1215.88
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