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

As of today, Wal-Mart Stores Inc's current share price is $67.00. Wal-Mart Stores Inc's E10 for the quarter that ended in Oct. 2015 was $4.35. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 15.40.

WMT' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 12.97   Max: 29.56
Current: 15.48

12.97
29.56

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 29.56. The lowest was 12.97. And the median was 19.65.

WMT's Shiller P/E Ratio is ranked higher than
67% of the 129 Companies
in the Global Discount Stores industry.

( Industry Median: 19.11 vs. WMT: 15.48 )

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. 2015 was $1.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.35 for the trailing ten years ended in Oct. 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
=67.00/4.35
=15.40

* 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 Oct. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2015 (Change)*Current CPI (Oct. 2015)
=1.03/237.838*237.838
=1.030

Current CPI (Oct. 2015) = 237.838.

Wal-Mart Stores Inc Quarterly Data

201307201310201401201404201407201410201501201504201507201510
per share eps 1.2401.1401.3621.1101.2601.1501.5311.0301.0801.030
CPI 233.596233.546233.916237.072238.250237.433233.707236.599238.654237.838
Adj_EPS 1.2631.1611.3851.1141.2581.1521.5581.0351.0761.030
201101201104201107201110201201201204201207201210201301201304
per share eps 1.7000.9701.0900.9601.5031.0901.1801.0801.6701.140
CPI 220.223224.906225.922226.421226.665230.085229.104231.317230.280232.531
Adj_EPS 1.8361.0261.1471.0081.5771.1271.2251.1101.7251.166
200807200810200901200904200907200910201001201004201007201010
per share eps 0.8700.8000.9630.7700.8900.8101.2470.8700.9700.950
CPI 219.964216.573211.143213.240215.351216.177216.687218.009218.011218.711
Adj_EPS 0.9410.8791.0850.8590.9830.8911.3690.9491.0581.033
200601200604200607200610200701200704200707200710200801200804
per share eps 0.8610.6300.5000.6300.9480.6800.7200.7001.0250.760
CPI 198.300201.500203.500201.800202.416206.686208.299208.936211.080214.823
Adj_EPS 1.0330.7440.5840.7431.1140.7820.8220.7971.1550.841

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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ShillerPE 0.0024.8222.8719.4519.7218.5018.1418.7718.7220.27

Wal-Mart Stores Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
ShillerPE 20.0219.4418.6419.4717.5918.2120.1918.2216.7013.17
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