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Discover Financial Services (NYSE:DFS)
Shiller PE Ratio
15.18 (As of Today)

As of today, Discover Financial Services's current share price is $59.20. Discover Financial Services's E10 for the quarter that ended in Mar. 2017 was $3.90. Discover Financial Services's Shiller P/E Ratio for today is 15.18.

DFS' s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.68   Max: 19.06
Current: 15.16

12.68
19.06

During the past 13 years, Discover Financial Services's highest Shiller P/E Ratio was 19.06. The lowest was 12.68. And the median was 15.96.

DFS's Shiller PE Ratio is ranked lower than
59% of the 44 Companies
in the Global Credit Services industry.

( Industry Median: 14.84 vs. DFS: 15.16 )

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.

Discover Financial Services's adjusted earnings per share data for the three months ended in Mar. 2017 was $1.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.90 for the trailing ten years ended in Mar. 2017.


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.

Discover Financial Services's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=59.20/3.90
=15.18

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Discover Financial Services's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Discover Financial Services's adjusted earnings per share data for the three months ended in Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=1.43/243.985*243.985
=1.430

Current CPI (Mar. 2017) = 243.985.

Discover Financial Services Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 0.8801.2801.3301.3801.1501.3501.4701.5601.4001.430
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 0.9141.3231.3601.4151.1861.3831.4881.5771.4151.430
201205201208201211201303201306201309201312201403201406201409
per share eps 1.0001.2101.0701.3301.2001.2001.2401.3101.3501.370
CPI 229.815230.379230.221232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.0621.2811.1341.3941.2541.2501.2981.3531.3821.404
200911201002201005201008201011201102201105201108201111201202
per share eps 0.600-0.2200.3300.4700.6400.8401.0901.1800.9501.180
CPI 216.330216.741218.178218.312218.803221.309225.964226.545226.230227.663
Adj_EPS 0.677-0.2480.3690.5250.7140.9261.1771.2711.0251.265
200705200708200711200802200805200808200811200902200905200908
per share eps 0.4400.420-0.1200.1700.4800.3700.8900.2500.4301.070
CPI 207.949207.917210.177211.693216.632219.086212.425212.193213.856215.834
Adj_EPS 0.5160.493-0.1390.1960.5410.4121.0220.2870.4911.210

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 local exchange's currency.

Discover Financial Services Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15Dec16
ShillerPE 0.000.000.000.000.000.000.000.0015.2618.88

Discover Financial Services Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 0.000.000.0014.9215.2614.8915.1015.5218.8817.52
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