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

As of today, Wal-Mart Stores Inc's current share price is $67.35. Wal-Mart Stores Inc's E10 for the quarter that ended in Jan. 2016 was $4.40. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 15.31.

WMT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.94   Max: 29.04
Current: 15.32

12.94
29.04

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 29.04. The lowest was 12.94. And the median was 19.55.

WMT's Shiller P/E Ratio is ranked higher than
71% of the 78 Companies
in the Global Discount Stores industry.

( Industry Median: 19.84 vs. WMT: 15.32 )

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 Jan. 2016 was $1.441. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.40 for the trailing ten years ended in Jan. 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.

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

Shiller P/E Ratio=Share Price/E10
=67.35/4.40
=15.31

* 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 Jan16 is calculated as:

For example, Wal-Mart Stores Inc's adjusted earnings per share data for the three months ended in Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=1.441/236.916*236.916
=1.441

Current CPI (Jan. 2016) = 236.916.

Wal-Mart Stores Inc Quarterly Data

201310201401201404201407201410201501201504201507201510201601
per share eps 1.1401.3621.1101.2601.1501.5311.0301.0801.0301.441
CPI 233.546233.916237.072238.250237.433233.707236.599238.654237.838236.916
Adj_EPS 1.1561.3791.1091.2531.1471.5521.0311.0721.0261.441
201104201107201110201201201204201207201210201301201304201307
per share eps 0.9701.0900.9601.5031.0901.1801.0801.6701.1401.240
CPI 224.906225.922226.421226.665230.085229.104231.317230.280232.531233.596
Adj_EPS 1.0221.1431.0041.5711.1221.2201.1061.7181.1611.258
200810200901200904200907200910201001201004201007201010201101
per share eps 0.8000.9630.7700.8900.8101.2470.8700.9700.9501.700
CPI 216.573211.143213.240215.351216.177216.687218.009218.011218.711220.223
Adj_EPS 0.8751.0810.8550.9790.8881.3630.9451.0541.0291.829
200604200607200610200701200704200707200710200801200804200807
per share eps 0.6300.5000.6300.9480.6800.7200.7001.0250.7600.870
CPI 201.500203.500201.800202.416206.686208.299208.936211.080214.823219.964
Adj_EPS 0.7410.5820.7401.1100.7790.8190.7941.1500.8380.937

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.

Wal-Mart Stores Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
ShillerPE 24.6922.7519.3519.6318.5718.2018.8418.6020.3315.09

Wal-Mart Stores Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ShillerPE 19.5818.6019.4317.7218.1620.3318.1716.4913.1415.09
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