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

As of today, Wal-Mart Stores Inc's current share price is $86.91. Wal-Mart Stores Inc's E10 for the quarter that ended in Oct. 2014 was $4.71. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 18.45.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.41   Max: 38.37
Current: 18.5

13.41
38.37

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 38.37. The lowest was 13.41. And the median was 17.78.

WMT's Shiller P/E Ratiois ranked higher than
90% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 31.84 vs. WMT: 18.50 )

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 $1.141. 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 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
=86.91/4.71
=18.45

* 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*235.51
=1.141

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

Current CPI = 235.51.

Wal-Mart Stores Inc Quarterly Data

201207201210201301201304201307201310201401201404201407201410
per share eps 1.1801.0801.6701.1401.2401.1401.3621.1101.2601.150
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250237.433
Adj_EPS 1.2131.1001.7081.1551.2501.1501.3711.1031.2461.141
201001201004201007201010201101201104201107201110201201201204
per share eps 1.2470.8700.9700.9501.7000.9701.0900.9601.5031.090
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 1.3550.9401.0481.0231.8181.0161.1360.9991.5621.116
200901200904200907200910
per share eps 0.9630.7700.8900.810
CPI 211.143213.240215.351216.177
Adj_EPS 1.0740.8500.9730.882

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 28.9021.9120.4219.1316.4716.9216.0015.9516.4816.53

Wal-Mart Stores Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ShillerPE 18.3918.0916.4817.8717.6317.1316.5317.1216.0416.23
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