Switch to:
Willis Group Holdings PLC (NYSE:WSH)
Shiller P/E Ratio
34.91 (As of Today)

As of today, Willis Group Holdings PLC's current share price is \$48.18. Willis Group Holdings PLC's E10 for the quarter that ended in Dec. 2014 was \$1.38. Willis Group Holdings PLC's Shiller P/E Ratio for today is 34.91.

WSH' s 10-Year Shiller P/E Ratio Range
Min: 7.43   Max: 35.63
Current: 35

7.43
35.63

During the past 13 years, Willis Group Holdings PLC's highest Shiller P/E Ratio was 35.63. The lowest was 7.43. And the median was 14.80.

WSH's Shiller P/E Ratiois ranked higher than
75% of the 490 Companies
in the Global Insurance Brokers industry.

( Industry Median: 45.20 vs. WSH: 35.00 )

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.

Willis Group Holdings PLC's adjusted earnings per share data for the three months ended in Dec. 2014 was \$0.425. 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 \$1.38 for the trailing six years ended in Dec. 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.

Willis Group Holdings PLC's Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 48.18 / 1.38 = 34.91

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Willis Group Holdings PLC's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Willis Group Holdings PLC's adjusted earnings per share data for the three months ended in Dec. 2014 was:

 Adj_EPS = Earnigns per Share / CPI of Dec. 2014 * CPI of Current = 0.427 / 234.812 * 233.808 = 0.425

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

Current CPI = 233.808.

Willis Group Holdings PLC Quarterly Data

 201209 201212 201303 201306 201309 201312 201403 201406 201409 201412 per share eps 0.15 -4.653 1.24 0.59 -0.150 0.374 1.350 0.260 -0.040 0.427 CPI 231.407 229.601 232.773 233.504 234.149 233.049 236.293 238.343 238.031 234.812 Adj_EPS 0.152 -4.738 1.246 0.591 -0.150 0.375 1.336 0.255 -0.039 0.425 201003 201006 201009 201012 201103 201106 201109 201112 201203 201206 per share eps 1.2 0.52 0.37 0.573 0.200 0.480 0.340 0.140 1.280 0.610 CPI 217.631 217.965 218.439 219.179 223.467 225.722 226.889 225.672 229.392 229.478 Adj_EPS 1.289 0.558 0.396 0.611 0.209 0.497 0.350 0.145 1.305 0.622 200903 200906 200909 200912 per share eps 1.16 0.52 0.47 0.459 CPI 212.709 215.693 215.969 215.949 Adj_EPS 1.275 0.564 0.509 0.497

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Willis Group Holdings PLC Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 ShillerPE 0.00 21.00 15.56 9.83 10.32 13.53 15.59 21.42 31.52 32.54

Willis Group Holdings PLC Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 ShillerPE 14.51 21.42 24.76 25.61 29.25 31.52 30.52 29.76 29.51 32.54
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)