Switch to:
GuruFocus has detected 4 Warning Signs with Wal-Mart Stores Inc $WMT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Wal-Mart Stores Inc (NYSE:WMT)
Shiller PE Ratio
16.28 (As of Today)

As of today, Wal-Mart Stores Inc's current share price is $76.01. Wal-Mart Stores Inc's E10 for the quarter that ended in Apr. 2017 was $4.67. Wal-Mart Stores Inc's Shiller P/E Ratio for today is 16.28.

WMT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.94   Max: 27.27
Current: 16.28

12.94
27.27

During the past 13 years, Wal-Mart Stores Inc's highest Shiller P/E Ratio was 27.27. The lowest was 12.94. And the median was 19.11.

WMT's Shiller PE Ratio is ranked higher than
72% of the 87 Companies
in the Global Discount Stores industry.

( Industry Median: 22.36 vs. WMT: 16.28 )

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 Apr. 2017 was $1.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.67 for the trailing ten years ended in Apr. 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.

Wal-Mart Stores Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=76.01/4.67
=16.28

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

Wal-Mart Stores Inc's E10 for the fiscal year that ended in Jan17 is calculated as:

For example, Wal-Mart Stores Inc's adjusted earnings per share data for the three months ended in Apr. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2017 (Change)*Current CPI (Apr. 2017)
=1/244.524*244.524
=1.000

Current CPI (Apr. 2017) = 244.524.

Wal-Mart Stores Inc Quarterly Data

201501201504201507201510201601201604201607201610201701201704
per share eps 1.5401.0301.0801.0301.4400.9801.2100.9801.2201.000
CPI 233.707236.599238.654237.838236.916239.261240.628241.729242.839244.524
Adj_EPS 1.6111.0651.1071.0591.4861.0021.2300.9911.2281.000
201207201210201301201304201307201310201401201404201407201410
per share eps 1.1801.0801.6701.1401.2401.1401.3601.1101.2601.150
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250237.433
Adj_EPS 1.2591.1421.7731.1991.2981.1941.4221.1451.2931.184
201001201004201007201010201101201104201107201110201201201204
per share eps 1.2400.8700.9700.9501.6800.9701.0900.9601.5001.090
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 1.3990.9761.0881.0621.8651.0551.1801.0371.6181.158
200707200710200801200804200807200810200901200904200907200910
per share eps 0.7200.7001.0200.7600.8700.8000.9600.7700.8900.810
CPI 208.299208.936211.080214.823219.964216.573211.143213.240215.351216.177
Adj_EPS 0.8450.8191.1820.8650.9670.9031.1120.8831.0110.916

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.

Wal-Mart Stores Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ShillerPE 22.8319.4219.7118.5118.1618.8118.7620.3115.0814.36

Wal-Mart Stores Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ShillerPE 20.3118.3316.6413.1315.0814.9716.1115.2414.3616.11
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)

GF Chat

{{numOfNotice}}
FEEDBACK