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

As of today, Wal-Mart Stores Inc's current share price is $71.62. Wal-Mart Stores Inc's E10 for the quarter that ended in Jul. 2016 was $4.53. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 15.81.

WMT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.94   Max: 27.72
Current: 15.82

12.94
27.72

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 27.72. The lowest was 12.94. And the median was 19.24.

WMT's Shiller P/E Ratio is ranked higher than
70% of the 79 Companies
in the Global Discount Stores industry.

( Industry Median: 21.46 vs. WMT: 15.82 )

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. 2016 was $1.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.53 for the trailing ten years ended in Jul. 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
=71.62/4.53
=15.81

* 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 Jul. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jul. 2016 (Change)*Current CPI (Jul. 2016)
=1.21/240.647*240.647
=1.210

Current CPI (Jul. 2016) = 240.647.

Wal-Mart Stores Inc Quarterly Data

201404201407201410201501201504201507201510201601201604201607
per share eps 1.1101.2601.1501.5401.0301.0801.0301.4400.9801.210
CPI 237.072238.250237.433233.707236.599238.654237.838236.916239.261240.647
Adj_EPS 1.1271.2731.1661.5861.0481.0891.0421.4630.9861.210
201110201201201204201207201210201301201304201307201310201401
per share eps 0.9601.5001.0901.1801.0801.6701.1401.2401.1401.360
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 1.0201.5931.1401.2391.1241.7451.1801.2771.1751.399
200904200907200910201001201004201007201010201101201104201107
per share eps 0.7700.8900.8101.2400.8700.9700.9501.6800.9701.090
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS 0.8690.9950.9021.3770.9601.0711.0451.8361.0381.161
200610200701200704200707200710200801200804200807200810200901
per share eps 0.6300.9500.6800.7200.7001.0200.7600.8700.8000.960
CPI 201.800202.416206.686208.299208.936211.080214.823219.964216.573211.143
Adj_EPS 0.7511.1290.7920.8320.8061.1630.8510.9520.8891.094

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 24.7922.8619.4419.7318.5118.1618.8018.7520.3115.07

Wal-Mart Stores Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
ShillerPE 19.4017.7018.1420.3118.3316.6413.1215.0714.9616.10
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