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

As of today, Wal-Mart Stores Inc's current share price is $77.88. Wal-Mart Stores Inc's E10 for the quarter that ended in Jan. 2015 was $4.78. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 16.29.

WMT' s 10-Year Shiller P/E Ratio Range
Min: 13.41   Max: 35.96
Current: 16.1

13.41
35.96

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 35.96. The lowest was 13.41. And the median was 17.64.

WMT's Shiller P/E Ratiois ranked higher than
89% of the 680 Companies
in the Global Discount Stores industry.

( Industry Median: 43.30 vs. WMT: 16.10 )

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 $1.543. 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 $4.78 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
=77.88/4.78
=16.29

* 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*235.483
=1.543

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

Current CPI = 235.483.

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 1.0991.7081.1541.2501.1491.3711.1031.2451.1411.543
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 0.9401.0481.0231.8181.0161.1360.9981.5611.1161.213
200904200907200910201001
per share eps 0.7700.8900.8101.247
CPI 213.240215.351216.177216.687
Adj_EPS 0.8500.9730.8821.355

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 21.9320.4319.1316.3416.9416.0115.9616.4816.5317.78

Wal-Mart Stores Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 18.1016.4817.8717.6317.1316.5317.1315.6316.0517.78
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK