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Bed Bath & Beyond Inc (NAS:BBBY)
Shiller P/E Ratio
19.12 (As of Today)

As of today, Bed Bath & Beyond Inc's current share price is $74.36. Bed Bath & Beyond Inc's E10 for the quarter that ended in Nov. 2014 was $3.89. Bed Bath & Beyond Inc's Shiller P/E Ratio for today is 19.12.

BBBY' s 10-Year Shiller P/E Ratio Range
Min: 9.38   Max: 48.48
Current: 19.13

9.38
48.48

During the past 13 years, Bed Bath & Beyond Inc's highest Shiller P/E Ratio was 48.48. The lowest was 9.38. And the median was 21.72.

BBBY's Shiller P/E Ratiois ranked higher than
86% of the 1369 Companies
in the Global Specialty Retail industry.

( Industry Median: 50.33 vs. BBBY: 19.13 )

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.

Bed Bath & Beyond Inc's adjusted earnings per share data for the three months ended in Nov. 2014 was $1.218. 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 $3.89 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.

Bed Bath & Beyond Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=74.36/3.89
=19.12

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

Bed Bath & Beyond Inc's E10 for the fiscal year that ended in Feb14 is calculated as:

For example, Bed Bath & Beyond 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
=1.23/236.151*233.808
=1.218

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

Current CPI = 233.808.

Bed Bath & Beyond Inc Quarterly Data

201208201211201302201305201308201311201402201405201408201411
per share eps 0.9801.0301.6820.9301.1601.1201.6020.9301.1701.230
CPI 230.379230.221232.166232.945233.877233.069234.781237.900237.852236.151
Adj_EPS 0.9951.0461.6940.9331.1601.1241.5950.9141.1501.218
201002201005201008201011201102201105201108201111201202201205
per share eps 0.8630.5200.7000.7401.1210.7200.9300.9501.4780.890
CPI 216.741218.178218.312218.803221.309225.964226.545226.230227.663229.815
Adj_EPS 0.9310.5570.7500.7911.1840.7450.9600.9821.5180.905
200902200905200908200911
per share eps 0.5480.3400.5200.580
CPI 212.193213.856215.834216.330
Adj_EPS 0.6040.3720.5630.627

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.

Bed Bath & Beyond Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ShillerPE 37.4428.4225.9915.5911.2420.2220.9822.3518.3319.17

Bed Bath & Beyond Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ShillerPE 23.3620.0818.3321.2522.3323.0019.1716.4016.8218.87
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