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

As of today, Bed Bath & Beyond Inc's current share price is $64.18. Bed Bath & Beyond Inc's E10 for the quarter that ended in May. 2014 was $3.70. Bed Bath & Beyond Inc's Shiller P/E Ratio for today is 17.34.

BBBY' s 10-Year Shiller P/E Ratio Range
Min: 9.38   Max: 60.94
Current: 17.34

9.38
60.94

During the past 13 years, Bed Bath & Beyond Inc's highest Shiller P/E Ratio was 60.94. The lowest was 9.38. And the median was 22.26.

BBBY's Shiller P/E Ratiois ranked higher than
87% of the 1199 Companies
in the Global Specialty Retail industry.

( Industry Median: 45.86 vs. BBBY: 17.34 )

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 May. 2014 was $0.931. 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 $3.70 for the trailing six years ended in May. 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
=64.18/3.70
=17.35

* 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 May. 2014 was:

Adj_EPS=Earnigns per Share/CPI of May. 2014*CPI of Current
=0.93/237.9*238.064
=0.931

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

Current CPI = 238.064.

Bed Bath & Beyond Inc Quarterly Data

201202201205201208201211201302201305201308201311201402201405
per share eps 1.4780.8900.9801.0301.6820.9301.1601.1201.6020.930
CPI 227.663229.815230.379230.221232.166232.945233.877233.069234.781237.900
Adj_EPS 1.5460.9221.0131.0651.7250.9501.1811.1441.6240.931
200908200911201002201005201008201011201102201105201108201111
per share eps 0.5200.5800.8630.5200.7000.7401.1210.7200.9300.950
CPI 215.834216.330216.741218.178218.312218.803221.309225.964226.545226.230
Adj_EPS 0.5740.6380.9480.5670.7630.8051.2060.7590.9771.000
200808200811200902200905
per share eps 0.4600.3400.5480.340
CPI 219.086212.425212.193213.856
Adj_EPS 0.5000.3810.6150.378

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 37.3828.3925.9715.5911.2420.2220.9922.3618.3519.02

Bed Bath & Beyond Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ShillerPE 22.3626.0023.3819.9118.3521.2822.3623.0319.0216.44
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)
Free 7-day Trial
FEEDBACK