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

As of today, Bed Bath & Beyond Inc's current share price is $62.32. Bed Bath & Beyond Inc's E10 for the quarter that ended in May. 2015 was $4.26. Bed Bath & Beyond Inc's Shiller P/E Ratio for today is 14.63.

BBBY' s 10-Year Shiller P/E Ratio Range
Min: 9.38   Max: 46.76
Current: 14.62

9.38
46.76

During the past 13 years, Bed Bath & Beyond Inc's highest Shiller P/E Ratio was 46.76. The lowest was 9.38. And the median was 21.16.

BBBY's Shiller P/E Ratiois ranked higher than
66% of the 475 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.36 vs. BBBY: 14.62 )

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. 2015 was $0.933. 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 $4.26 for the trailing six years ended in May. 2015.


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
=62.32/4.26
=14.63

* 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 Feb15 is calculated as:

For example, Bed Bath & Beyond Inc's adjusted earnings per share data for the three months ended in May. 2015 was:

Adj_EPS=Earnigns per Share/CPI of May. 2015*CPI of Current
=0.93/237.805*238.662
=0.933

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

Current CPI = 238.662.

Bed Bath & Beyond Inc Quarterly Data

201302201305201308201311201402201405201408201411201502201505
per share eps 1.6820.9301.1601.1201.6020.9301.1701.2301.8020.930
CPI 232.166232.945233.877233.069234.781237.900237.852236.151234.722237.805
Adj_EPS 1.7290.9531.1841.1471.6280.9331.1741.2431.8320.933
201008201011201102201105201108201111201202201205201208201211
per share eps 0.7000.7401.1210.7200.9300.9501.4780.8900.9801.030
CPI 218.312218.803221.309225.964226.545226.230227.663229.815230.379230.221
Adj_EPS 0.7650.8071.2090.7600.9801.0021.5490.9241.0151.068
200908200911201002201005
per share eps 0.5200.5800.8630.520
CPI 215.834216.330216.741218.178
Adj_EPS 0.5750.6400.9500.569

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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
ShillerPE 28.3325.9215.6811.2120.1620.9322.3218.3019.1618.26

Bed Bath & Beyond Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
ShillerPE 18.3021.2322.3122.9819.1616.4016.8118.6918.2616.74
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