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AutoZone Inc (NYSE:AZO)
Shiller P/E Ratio
26.60 (As of Today)

As of today, AutoZone Inc's current share price is $617.43. AutoZone Inc's E10 for the quarter that ended in Nov. 2014 was $23.21. AutoZone Inc's Shiller P/E Ratio for today is 26.60.

AZO' s 10-Year Shiller P/E Ratio Range
Min: 11.28   Max: 28.94
Current: 26.6

11.28
28.94

During the past 13 years, AutoZone Inc's highest Shiller P/E Ratio was 28.94. The lowest was 11.28. And the median was 21.24.

AZO's Shiller P/E Ratiois ranked higher than
81% of the 1353 Companies
in the Global Specialty Retail industry.

( Industry Median: 50.31 vs. AZO: 26.60 )

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.

AutoZone Inc's adjusted earnings per share data for the three months ended in Nov. 2014 was $7.250. 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 $23.21 for the trailing six years ended in Nov. 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.

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

Shiller P/E Ratio=Share Price/E10
=617.43/23.21
=26.60

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

AutoZone Inc's E10 for the fiscal year that ended in Aug14 is calculated as:

For example, AutoZone Inc's adjusted earnings per share data for the three months ended in Nov. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Nov. 2014*CPI of Current
=7.27/236.151*235.51
=7.250

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

Current CPI = 235.51.

AutoZone Inc Quarterly Data

201208201211201302201305201308201311201402201405201408201411
per share eps 8.5635.4104.7807.27010.5166.2905.6308.46011.3667.270
CPI 230.379230.221232.166232.945233.877233.069234.781237.900237.852236.151
Adj_EPS 8.7545.5344.8497.35010.5896.3565.6478.37511.2547.250
201002201005201008201011201102201105201108201111201202201205
per share eps 2.4604.1205.7273.7703.3405.2907.2744.6804.1506.280
CPI 216.741218.178218.312218.803221.309225.964226.545226.230227.663229.815
Adj_EPS 2.6734.4476.1784.0583.5545.5137.5624.8724.2936.436
200902200905200908200911
per share eps 2.0303.1304.5042.820
CPI 212.193213.856215.834216.330
Adj_EPS 2.2533.4474.9153.070

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.

AutoZone Inc Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
ShillerPE 20.1815.7417.2316.5016.1320.0023.9823.2322.3724.04

AutoZone Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ShillerPE 23.2323.7822.6023.1922.3723.7426.5724.8524.0424.89
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