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

As of today, Bed Bath & Beyond Inc's current share price is $66.22. Bed Bath & Beyond Inc's E10 for the quarter that ended in Aug. 2014 was $3.80. Bed Bath & Beyond Inc's Shiller P/E Ratio for today is 17.50.

BBBY' s 10-Year Shiller P/E Ratio Range
Min: 9.43   Max: 60.94
Current: 17.5

9.43
60.94

During the past 13 years, Bed Bath & Beyond Inc's highest Shiller P/E Ratio was 60.94. The lowest was 9.43. And the median was 22.18.

BBBY's Shiller P/E Ratiois ranked higher than
86% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 39.36 vs. BBBY: 17.50 )

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 Aug. 2014 was $1.166. 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 $3.80 for the trailing six years ended in Aug. 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
=66.22/3.80
=17.43

* 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 Aug. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Aug. 2014*CPI of Current
=1.17/237.852*237.056
=1.166

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

Current CPI = 237.056.

Bed Bath & Beyond Inc Quarterly Data

201205201208201211201302201305201308201311201402201405201408
per share eps 0.8900.9801.0301.6820.9301.1601.1201.6020.9301.170
CPI 229.815230.379230.221232.166232.945233.877233.069234.781237.900237.852
Adj_EPS 0.9181.0081.0611.7170.9461.1761.1391.6180.9271.166
200911201002201005201008201011201102201105201108201111201202
per share eps 0.5800.8630.5200.7000.7401.1210.7200.9300.9501.478
CPI 216.330216.741218.178218.312218.803221.309225.964226.545226.230227.663
Adj_EPS 0.6360.9440.5650.7600.8021.2010.7550.9730.9951.539
200811200902200905200908
per share eps 0.3400.5480.3400.520
CPI 212.425212.193213.856215.834
Adj_EPS 0.3790.6120.3770.571

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 37.5628.2925.8815.6511.2920.1120.8822.2418.2519.09

Bed Bath & Beyond Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ShillerPE 25.8523.4719.9818.2521.3622.2423.1319.0916.5016.91
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