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

As of today, AutoZone Inc's current share price is $516.16. AutoZone Inc's E10 for the quarter that ended in Feb. 2014 was $20.37. AutoZone Inc's Shiller P/E Ratio for today is 25.33.

AZO' s 10-Year Shiller P/E Ratio Range
Min: 11.24   Max: 34.6
Current: 25.33

11.24
34.6

During the past 13 years, AutoZone Inc's highest Shiller P/E Ratio was 34.60. The lowest was 11.24. And the median was 21.30.

AZO's Shiller P/E Ratiois ranked higher than
52% of the 541 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.92 vs. AZO: 25.33 )

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 Feb. 2014 was $5.671. 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 $20.37 for the trailing six years ended in Feb. 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
=516.16/20.37
=25.34

* 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 Aug13 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Feb. 2014*CPI of Current
=5.63/234.781*236.511
=5.671

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

AutoZone Inc Quarterly Data

201111201202201205201208201211201302201305201308201311201402
per share eps 4.6804.1506.2808.5635.4104.7807.27010.5166.2905.630
CPI 226.230227.663229.815230.379230.221232.166232.945233.877233.069234.781
Adj_EPS 4.8934.3116.4638.7915.5584.8697.38110.6346.3835.671
200905200908200911201002201005201008201011201102201105201108
per share eps 3.1304.5042.8202.4604.1205.7273.7703.3405.2907.274
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 3.4624.9353.0832.6844.4666.2044.0753.5695.5377.594
200805200808200811200902
per share eps 2.4903.8982.2302.030
CPI 216.632219.086212.425212.193
Adj_EPS 2.7184.2082.4832.263

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

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ShillerPE 20.2720.0915.6817.3116.5816.1919.9223.8823.3222.24

AutoZone Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ShillerPE 24.8227.1125.9823.3223.8622.6823.2722.2423.6126.26
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