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

As of today, Wal-Mart Stores Inc's current share price is $76.38. Wal-Mart Stores Inc's E10 for the quarter that ended in Jul. 2014 was $4.69. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 16.29.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.48   Max: 39.04
Current: 16.29

13.48
39.04

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 39.04. The lowest was 13.48. And the median was 17.76.

WMT's Shiller P/E Ratiois ranked higher than
86% of the 538 Companies
in the Global Discount Stores industry.

( Industry Median: 30.53 vs. WMT: 16.29 )

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 $1.254. 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 $4.69 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
=76.38/4.69
=16.29

* 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*237.056
=1.254

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

Current CPI = 237.056.

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 1.1231.2211.1071.7191.1621.2581.1571.3801.1101.254
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 0.8881.3640.9461.0551.0301.8301.0221.1441.0051.572
200810200901200904200907
per share eps 0.8000.9630.7700.890
CPI 216.573211.143213.240215.351
Adj_EPS 0.8761.0810.8560.980

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 28.7421.9620.4719.0216.3916.8416.0616.0116.5416.43

Wal-Mart Stores Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 14.8518.2917.9916.5417.9417.5317.2016.4317.1915.95
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