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

As of today, Wal-Mart Stores Inc's current share price is $78.04. Wal-Mart Stores Inc's E10 for the quarter that ended in Jan. 2014 was $4.57. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 17.06.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.52   Max: 40.63
Current: 17.06

13.52
40.63

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 40.63. The lowest was 13.52. And the median was 18.15.

WMT's Shiller P/E Ratiois ranked higher than
79% of the 240 Companies
in the Global Discount Stores industry.

( Industry Median: 20.16 vs. WMT: 17.06 )

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. 2014 was $1.377. 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 $4.57 for the trailing six years ended in Jan. 2014.


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
=78.04/4.57
=17.08

* 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 Jan14 is calculated as:

For example, Wal-Mart Stores Inc's adjusted earnings per share data for the three months ended in Jan. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2014*CPI of Current
=1.362/233.916*236.511
=1.377

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Wal-Mart Stores Inc Quarterly Data

201110201201201204201207201210201301201304201307201310201401
per share eps 0.9601.5031.0901.1801.0801.6701.1401.2401.1401.362
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 1.0031.5681.1201.2181.1041.7151.1601.2551.1541.377
200904200907200910201001201004201007201010201101201104201107
per share eps 0.7700.8900.8101.2470.8700.9700.9501.7000.9701.090
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS 0.8540.9770.8861.3610.9441.0521.0271.8261.0201.141
200804200807200810200901
per share eps 0.7600.8700.8000.963
CPI 214.823219.964216.573211.143
Adj_EPS 0.8370.9350.8741.079

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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ShillerPE 28.7721.8120.5119.0516.4116.8715.9615.9216.5916.33

Wal-Mart Stores Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ShillerPE 15.0515.9214.8918.3418.0516.5917.9917.5817.0816.33
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