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

As of today, Wal-Mart Stores Inc's current share price is $70.75. Wal-Mart Stores Inc's E10 for the quarter that ended in Jan. 2016 was $4.42. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 16.01.

WMT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.88   Max: 28.06
Current: 16.01

12.88
28.06

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 28.06. The lowest was 12.88. And the median was 19.41.

WMT's Shiller P/E Ratio is ranked higher than
74% of the 76 Companies
in the Global Discount Stores industry.

( Industry Median: 20.44 vs. WMT: 16.01 )

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 $1.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.42 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
=70.75/4.42
=16.01

* 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 Jan15 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)
=1.43/236.916*236.916
=1.430

Current CPI (Jan. 2016) = 236.916.

Wal-Mart Stores Inc Quarterly Data

201401201404201407201410201501201504201507201510201601201604
per share eps 1.3621.1101.2601.1501.5311.0301.0801.0301.4300.980
CPI 233.916237.072238.250237.433233.707236.599238.654237.838236.916238.642
Adj_EPS 1.3791.1091.2531.1471.5521.0311.0721.0261.4300.973
201107201110201201201204201207201210201301201304201307201310
per share eps 1.0900.9601.5031.0901.1801.0801.6701.1401.2401.140
CPI 225.922226.421226.665230.085229.104231.317230.280232.531233.596233.546
Adj_EPS 1.1431.0041.5711.1221.2201.1061.7181.1611.2581.156
200901200904200907200910201001201004201007201010201101201104
per share eps 0.9630.7700.8900.8101.2470.8700.9700.9501.7000.970
CPI 211.143213.240215.351216.177216.687218.009218.011218.711220.223224.906
Adj_EPS 1.0810.8550.9790.8881.3630.9451.0541.0291.8291.022
200607200610200701200704200707200710200801200804200807200810
per share eps 0.5000.6300.9480.6800.7200.7001.0250.7600.8700.800
CPI 203.500201.800202.416206.686208.299208.936211.080214.823219.964216.573
Adj_EPS 0.5820.7401.1100.7790.8190.7941.1500.8380.9370.875

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 24.7422.8119.4019.6818.4518.0918.9118.6820.2215.01

Wal-Mart Stores Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ShillerPE 18.6819.5117.6218.2420.2218.2516.5613.0715.010.00
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