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

As of today, Wal-Mart Stores Inc's current share price is $63.89. Wal-Mart Stores Inc's E10 for the quarter that ended in Apr. 2015 was $4.87. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 13.12.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.08   Max: 32.12
Current: 13.08

13.08
32.12

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 32.12. The lowest was 13.08. And the median was 17.40.

WMT's Shiller P/E Ratiois ranked higher than
77% of the 210 Companies
in the Global Discount Stores industry.

( Industry Median: 22.91 vs. WMT: 13.08 )

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 Apr. 2015 was $1.039. 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 $4.87 for the trailing six years ended in Apr. 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
=63.89/4.87
=13.12

* 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 Apr. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2015*CPI of Current
=1.03/236.599*238.666
=1.039

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

Current CPI = 238.666.

Wal-Mart Stores Inc Quarterly Data

201301201304201307201310201401201404201407201410201501201504
per share eps 1.6701.1401.2401.1401.3621.1101.2601.1501.5311.030
CPI 230.280232.531233.596233.546233.916237.072238.250237.433233.707236.599
Adj_EPS 1.7311.1701.2671.1651.3901.1171.2621.1561.5631.039
201007201010201101201104201107201110201201201204201207201210
per share eps 0.9700.9501.7000.9701.0900.9601.5031.0901.1801.080
CPI 218.011218.711220.223224.906225.922226.421226.665230.085229.104231.317
Adj_EPS 1.0621.0371.8421.0291.1511.0121.5831.1311.2291.114
200907200910201001201004
per share eps 0.8900.8101.2470.870
CPI 215.351216.177216.687218.009
Adj_EPS 0.9860.8941.3730.952

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 21.8120.5119.0616.4216.8815.9715.9216.6016.4917.89

Wal-Mart Stores Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ShillerPE 16.6018.0017.5817.0916.4917.2515.5916.1717.8916.02
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