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

As of today, Wal-Mart Stores Inc's current share price is $81.35. Wal-Mart Stores Inc's E10 for the quarter that ended in Oct. 2014 was $4.67. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 17.42.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.41   Max: 35.96
Current: 17.6

13.41
35.96

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 35.96. The lowest was 13.41. And the median was 17.69.

WMT's Shiller P/E Ratiois ranked higher than
89% of the 594 Companies
in the Global Discount Stores industry.

( Industry Median: 35.25 vs. WMT: 17.60 )

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 Oct. 2014 was $1.132. 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 $4.67 for the trailing six years ended in Oct. 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
=81.35/4.67
=17.42

* 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 Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=1.15/237.433*233.808
=1.132

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

Current CPI = 233.808.

Wal-Mart Stores Inc Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps 1.0801.6701.1401.2401.1401.3621.1101.2601.1501.530
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433234.143
Adj_EPS 1.0921.6961.1461.2411.1411.3611.0951.2371.1321.528
201004201007201010201101201104201107201110201201201204201207
per share eps 0.8700.9700.9501.7000.9701.0900.9601.5031.0901.180
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS 0.9331.0401.0161.8051.0081.1280.9911.5501.1081.204
200904200907200910201001
per share eps 0.7700.8900.8101.247
CPI 213.240215.351216.177216.687
Adj_EPS 0.8440.9660.8761.346

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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ShillerPE 21.9020.5719.1016.4616.9015.9815.9316.6116.490.00

Wal-Mart Stores Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 18.0616.6118.0117.5917.0916.4917.2515.5916.320.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK