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Watsco Inc (NYSE:WSO)
Shiller PE Ratio
44.83 (As of Today)

As of today, Watsco Inc's current share price is $152.88. Watsco Inc's E10 for the quarter that ended in Mar. 2017 was $3.41. Watsco Inc's Shiller P/E Ratio for today is 44.83.

WSO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 17.1   Max: 47.81
Current: 44.85


During the past 13 years, Watsco Inc's highest Shiller P/E Ratio was 47.81. The lowest was 17.10. And the median was 31.73.

WSO's Shiller PE Ratio is ranked lower than
66% of the 426 Companies
in the Global Electronics Distribution industry.

( Industry Median: 32.04 vs. WSO: 44.85 )

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.

Watsco Inc's adjusted earnings per share data for the three months ended in Mar. 2017 was $0.710. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.41 for the trailing ten years ended in Mar. 2017.


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.

Watsco Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10

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

Watsco Inc's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Watsco Inc'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)

Current CPI (Mar. 2017) = 243.801.

Watsco Inc Quarterly Data

per share eps 0.6800.6501.8501.6400.7400.7101.8201.7800.8300.710
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.801
Adj_EPS 0.7060.6711.8901.6800.7630.7271.8411.7970.8380.710
per share eps 1.1501.1900.0800.3901.4801.3200.5000.4801.6001.560
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.2221.2540.0850.4081.5451.3740.5230.4951.6371.598
per share eps 0.1900.1001.0800.9700.3200.2101.0901.0200.4000.230
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.2150.1121.2081.0830.3560.2291.1771.0960.4320.244
per share eps 0.8200.9000.2500.2800.9000.8100.110-0.0700.5600.660
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 0.9601.0520.2900.3201.0030.9030.128-0.0800.6330.745

Add all the adjusted EPS together and divide 10 will get our E10.


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.

Watsco Inc Annual Data

ShillerPE 21.4621.2926.1530.7628.9930.7535.8236.7237.8344.64

Watsco Inc Quarterly Data

ShillerPE 36.7242.7840.5338.0737.8342.9043.5442.8944.6442.00
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