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

As of today, Wal-Mart Stores Inc's current share price is $75.86. Wal-Mart Stores Inc's E10 for the quarter that ended in Jan. 2015 was $4.82. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 15.74.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.45   Max: 32.12
Current: 15.8

13.45
32.12

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 32.12. The lowest was 13.45. And the median was 17.56.

WMT's Shiller P/E Ratiois ranked higher than
91% of the 689 Companies
in the Global Discount Stores industry.

( Industry Median: 39.69 vs. WMT: 15.80 )

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. 2015 was $1.554. 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 $4.82 for the trailing six years ended in Jan. 2015.


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
=75.86/4.82
=15.74

* 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. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=1.531/233.707*237.167
=1.554

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

Current CPI = 237.167.

Wal-Mart Stores Inc Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps 1.0801.6701.1401.2401.1401.3621.1101.2601.1501.531
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433233.707
Adj_EPS 1.1071.7201.1631.2591.1581.3811.1101.2541.1491.554
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 0.9461.0551.0301.8311.0231.1441.0061.5731.1241.222
200904200907200910201001
per share eps 0.7700.8900.8101.247
CPI 213.240215.351216.177216.687
Adj_EPS 0.8560.9800.8891.365

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 21.9620.4518.9916.3716.8216.0416.0016.5216.4117.64

Wal-Mart Stores Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 18.1416.5217.9217.6717.1716.4117.1715.6716.0917.64
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